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Earnings Reactions Also Bullish
When markets are on the move, up or down, the trend plows on regardless. In a bear market, when the sun is shining and earnings are good, the market worries about climate change and inflation. In a bull market, when it is raining and earnings are down, the market sees these things as helping to solve the water crisis and investing for the future. It’s almost as if markets have their own logic and reality is merely an input.
Right now the market is very much bulled up and the reaction to single-stock earnings has been bullish indeed.
A pullback will come, it always does, and it will be available to be played accordingly. But so far, up remains the direction of travel. We’ll know when it turns down, because it will, er, turn down. No need to anticipate or predict or theorize about when or why. We can just watch and react as always.
Let’s check in on our usual charts.
Paying members of this Market Insight Substack, scroll down for our take on the S&P500, the Nasdaq-100, the Dow Jones 30 and the Russell 2000.
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