Here's The FindLeadingStocks.com Morning Report
Good Morning Team,
- More Follow-Through: The Nasdaq 100 (QQQ) and Nasdaq Composite were the only indices that enjoyed a proper follow-through day (FTD) on Wednesday. Now, I want to see the other indices score proper FTDs.
- Leadership Expand & Breakouts Work: I also want to see leadership expand and more breakouts work. That can easily happen as we are beginning to healthier action on Wall Street.
- Earnings, Movers, & Leading Stocks: I want to see more leaders. We have a slew of earnings today, as always I want to focus on the winners from earnings season. By winners, I mean the stocks that gap up nicely (preferably a breakaway gap) after earnings and they also report good numbers. If you missed my report last night, here is the video, giving you the fish (actionable ideas) and teaching you how to fish as well (how to find leaders). https://vimeo.com/880336829/d7aa1f46de?share=copy
It's still early but here are the early movers as of 6:10amET
UP: ROKU, ELF, DASH, PYPL, CLX, CRVS, SBUX, NVO, SDGR, QCOM, EA, INFA, MDLZ
DOWN: CFLT, RELY, PCOR, TNDM, STAA, RUN, ETSY, BMRN - 10 Year Yield & The USD: I've mentioned several times in recent weeks both the yield on the 10 year and the US Dollar were extended to the upside and due to pullback. Now, they are pulling back. That said, they are both still in clear uptrends. Many people are saying that 10 year yield topped out but more time and price is needed before that unfolds.
10 Year Yield - uptrend
The One-Two Punch From Jay and Janet Did the Job Yesterday To Bring Down The 10-Year Yield.
Powell & Yellen Were Dovish: Shocker of all shockers, Powell and Yellen were dovish yesterday. The fact that Powell was not super hawkish meant that he was dovish and Yellen (who was very dovish at the Fed) was also dovish. They both came in below "expectations" and that was perceived as them being dovish yesterday. Remember, the market fell hard over the last few months, and the selling intensified over the last few weeks, which was the market's way of putting pressure on Yellen and Powell. Well, it worked. At least for now. Both Powell and Yellen blinked and came in below expectations. Then the market rallied. If the rally doesn't continue, then it will be in serious trouble. Here is a closer look at the Treasury's actions since many of you are asking. So I simplified it as much as I could to explain how Yellen was more dovish than expected. By the way, the dovish stance from both Powell and Yellen sent yields lower, and stocks higher. Yellen did 3 things that surprised the Street:
- Selling Less Long-Term Debt:
- The Treasury is going to sell fewer long-term bonds (debt) next week than people expected.
- This is like deciding to borrow less money in the form of loans from a bank.
- Focusing on Shorter-Term Bonds:
- The Treasury plans to sell more bonds with maturities ranging from two to seven years.
- They won't increase the sales of 10-year and 30-year bonds as much as previously thought.
- This indicates they want to avoid rapid increases in long-term interest rates.
- Think of it as someone preferring to borrow for a shorter period rather than a very long time.
- Faster Debt Repayment:
- Contrary to expectations, the Treasury doesn't plan to borrow as much money in the upcoming months.
- They aim to finish their borrowing needs sooner, particularly in February.
- This is kind of like someone deciding to pay off their loans more quickly than originally planned.
In simple terms, the Treasury is being cautious by borrowing less, focusing on short-term loans, and paying back their debt(s) faster, which is similar to a person being prudent with their finances. Let's see if that lasts!
Have a great day!
Adam
- Selling Less Long-Term Debt:
