Equity bulls need a “shock to the upside” to get them back into their long-accustomed feather bed of new lifetime highs every day. Some thought last weekend’s “North Korea Peace Fest” would do the trick. It didn’t. New hope was offered after Monday’s close when GOOGL announced blowout earnings. It looked like just what the doctor ordered, as the stock roared nearly 50 points higher instantly. As you can see by the tinted area below, it wasn’t exactly long-lasting, and you could almost hear the face of GOOGL call owners drop in despair.
Still, the ES and NQ are both green as I’m typing this, with the ES up about half a percentage point. Annoying as that is, the intraday chart over about the past week still makes plain the broader trend of lower highs.
More important than any of this to me is what bonds are up to, and, happily, they are in the red (albeit only a fifth-point). Steady erosion is bonds is what I’m seeking.
