The rotations are truly insane. How can the chips go up big yesterday and then plummet today even as they are the real winners in a trade truce and an agreement that Huawei can get the parts it needs for handsets not infrastructure? That's still the majority of sales. It's a huge win.
How can the McDonald's (MCD) cohort go up as if the recession is once again upon us and it is happening because, well, who knows.
Then you have to ask yourself how in heck can you have a recessionary feel if Delta (DAL) just reported an upside surprise?
Perhaps it all comes down to one thing, oil. When oil goes down that means that the trade talks are fruitless, the economy is slowing and it's time to buy the companies that do well in a slowing environment.
How can everything key off of oil like this?
Cause it is wrong, that's how.
I think you buy what is down. We like (CAT) , initiated yesterday. We like it today. We will like it tomorrow.
Sure a stock like McDonald's can be bought. It has been bought relentlessly. Same with a Walmart (WMT)
But the recession story off of oil?
I am not buying it. Oil's supply not demand. And at $60 the futures selling is furious and could knock down an elephant.