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QDP: Is Bad News Good News For Stocks?

By Tim KnightMarket OverviewJul 28, 2022 09:19AM ET
www.investing.com/analysis/qdp-is-bad-news-good-news-for-stocks-200627772
QDP: Is Bad News Good News For Stocks?
By Tim Knight   |  Jul 28, 2022 09:19AM ET
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Well, there’s the GDP, and it’s negative. I only watch CNBC eight times a year—that is, before and during the FOMC circus. So yesterday, as I was watching, I could not believe how many experts were coming out and saying that the GDP would be modest, but positive. It all goes with the everything-is-always-great narrative that, evidently, some Slopers embrace. But it was a big miss. Here we see that the last two quarters were not only a miss, but also a substantial delta from their projections.

U.S. GPD QoQ
U.S. GPD QoQ

Of course, in this bad-news-is-good-news psycho ward that we now inhabit, the fact that the economy is withering away is GREAT news for stock buyers, because it means that the Fed will run screeching in the opposite direction from their minuscule QT efforts and, as they have for the past thirteen years, absolutely dump cash onto the heads of asset buyers. As I’m typing this, the S&P 500 Futures and Russell 2000 Futures are green, and the NASDAQ 100 Futures is working on it. Here’s the /ES, which dumped briefly after the GDP but then realized the stock buyers have the Fed by the short hairs once again.

S&P 500 Futures 5-Minute Chart
S&P 500 Futures 5-Minute Chart

QDP: Is Bad News Good News For Stocks?
 

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QDP: Is Bad News Good News For Stocks?

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Comments (4)
OldFng Guy
OldFng Guy Jul 29, 2022 12:06PM ET
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Hopefully there will be some fatalities from the next bubble burst. Mass shooting on Wall St would be a nice change of news.
G D
G D Jul 29, 2022 7:27AM ET
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Don't forget to grab a chair when the music stops.
Adi Avivi
Adi Avivi Jul 28, 2022 6:19PM ET
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fundamentals are fundamentals. no one thinks it will last and eventuly it will drop all these pumps. timing? is everything..
Ethan Strong
Ethan Strong Jul 28, 2022 9:53AM ET
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The financial system is a complete dumpster fire and most everyone seems complacently happy to sit around and cook there hotdogs with toxic fumes
 
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