Tech Springs a Leak

Yo Pit Crazies,

 

Tech stocks sprung a leak!

 

Yes, of course, the Invesco QQQ Trust (Ticker: QQQ) was up 4% at one point Thursday.

 

But that was before earnings, so it’s hard to imagine how good they would have to be to keep that momentum going.

 

Five-day QQQ Chart with one-minute candles

 

If you missed the 15% rally in QQQ this year will this be the chance to grab some?

 

AAPL Has Its Worst Revenue Miss Since 2016 

In any other time, writing that Apple Inc. (Ticker: AAPL) had a historic earnings miss, the stock would be down 10% after the bell. But on a day when AAPL was up $5.39 to north of $152 at one point, it only retreated to $147.

 

AAPL 5 Day Chart with one-minute candles

 

All the other Big Tech missed too, and QQQ was down 1% premarket after a 15% rally this year.

 

The outlier was Meta Inc. (Ticker: META), but only because it announced buying back $40 billion of the stock.

 

The big picture, as Bill “Macro Griff” Griffo would say, is the Fed.

 

The market thinks the Fed is slowing down and that trumps all others. I think we’ll dip a bit and go back to rallying next week – along with a VIX drop.

 

That’s crazy into bad earnings, but that is what we have.

 

To Your Trading Success,

AG

Andrew Giovinazzi

Andrew Giovinazzi

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About the Author

Andrew Giovinazzi

Andrew Giovinazzi

Former CBOE floor trader and CIO at Karman Line Capital. Author of ‘The Option Traders Hedge Fund’ with over 30 years of options trading experience.

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