Wall Street Strategies
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Afternoon Note

Momentum Influences

By Charles Payne, CEO & Principal Analyst
7/16/2020 1:34 PM

The market has been down for most of the session after an early rally fizzled, but buyers are being met by sellers midway through the day.  As I have been pointing out, pressure on big growth and momentum names influences the market exponentially because of the way the major indices are weighted.

It’s going to be really interesting to see how the last hour of trading unfolds. 

Meanwhile, the value trade is back on, which means opportunities in names that do not invoke excitement but have solid risk-reward dynamics.

S&P 500 Index

 

-0.71%

Communication Services XLC

 

-0.71%

Consumer Discretionary XLY

 

-0.76%

Consumer Staples XLP

+0.10%

 

Energy XLE

 

-0.08%

Financials XLF

+0.25%

 

Health Care XLV

 

-0.76%

Industrials XLI

+0.10%

 

Materials XLB

+0.20%

 

Real Estate XLRE

 

-1.26%

Technology XLK

 

-1.66%

Utilities XLU

+0.95%

 
 

These sessions are great for testing the resolve of investors, especially when it comes to big growth names, which have paused and pulled back many times during their magnificent rally.

All eyes are on Netflix (NFLX), which reports earnings after bell - looking for huge beat, but the initial reaction is always a coin toss. I would hold if I already had the stock, and we might be buyers on dip.

NFLX Earnings & Reactions

Quarter

Results

Reaction

Jul 2019

B $0.04

-10.3%

Oct 2019

B $0.43

+2.6%

Jan 2020

B $0.77

-4.0%

Apr 2020

M $0.08

-4.6%


Comments
You do a great job on Fox. I trust you more than anyone. (Outside my wife.) Keep doing what you're doing.

Lee J Chorley on 7/16/2020 2:59:16 PM
 

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