January 27, 2020 | Reaction to Apple’s Earnings Today Holds Key

Buyers hung tough on Monday because DaBoyz were able to exhaust sellers ahead of the opening bell. They won’t be able to rig the game that way on Tuesday, though, since the ‘coronavirus effect’  — on stocks, not humans — is already well in play. Rumors continue to swirl concerning the death toll in China, but it would take a very large pile of bodies to slow Wall Street’s buying orgy for more than a few days. Investable funds are effectively unlimited, implying they will continue to exert irresistible, upward force on stocks. Coronavirus, on the other hand, is hardly an immovable object — just a big news story that continues to mutate.  Absent that very large pile of bodies, however, and for the time being, bulls would seem to hold the edge. That could change at Tuesday’s close, however, with the release of Apple’s earnings. The reaction should give us a good read on the health of the bull market and set the tone for earnings announcements later this week from Boeing, Facebook, Microsoft and Amazon.

Rick Ackerman January 27th, 2020

Posted In: Rick's Picks

Next: The Panic »