Cycle Trading

[Duma]

99% of S&P500 companies are in buyback blackout period into next week and quant flows remain asymmetric on the supply side (AKA CTA sellers will win this tug of war). Earnings last week were great but were not rewarded (banks)...this week and next are the 2 busiest weeks of the earnings period.

This is a quote from Goldman's article today saying not to buy this dip.

I got very amused last week how Varney marched a line of pundits on set for several days leading up to the earnings reports for banks, saying "buy the banks, buy the banks." Not wanting to be left behind, I kept looking at my charts and I could not see anything. So I assumed it would be a gap jump when earnings came out and wanted nothing to do with that.

Then the earnings came and it was a nothing burger. Then for several days he ran another group of pundits on set to explain how the earnings were already priced into the stock price.

Just another lesson in being careful with what you hear from others. And that includes anything from me also. Always do your own analysis. Sure lots of opportunities are missed, but a careful eye will catch enough.