Saturday Review’s recording (for 1/21/17) …
With all of last week’s peripheral events, an actual breakout from the ongoing range would have been plausible. Holiday-shortened week, afternoon Yellen appearance, inauguration, ECB & Draghi. But rather than being catalysts for a breakout, they kept alive volatility within the range, and otherwise kept alive the range’s boundaries.
Barron’s Streetwise column attributes the rally’s pause to awaiting actual legislation that reflects President Trump’s agenda, already having sufficiently discounted the hope for it. Anxiousness ahead of earnings may have been a culprit previously, but 10% of the S&P 500 companies have reported and about 75% have beat. Perhaps a bullish reaction to earnings is only delayed. Really? Then the delayed bullish reaction would be only obligatory — temporary before ultimately reversing down.
What could produce a break either way from the ongoing range? How will we know it’s happening, and how far could or should it travel before reversing back into the range? This week’s Saturday Review addresses these conflicting signals and their origins, how they offer contextual clues toward the eventual resolution, and specific influential price objectives.
The following stock requests were reviewed in this order:
NFLX, AMZN, FB, GOOGL, AAPL, GS, S, MSFT, GOOGL (revisited), TXN