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In a Nutshell
Markets pumped hard on Amazon's massive 217% EPS beat and rallied 6% intraday, while Apple missed revenue expectations and fell 2.2% after initially rising, highlighting extreme volatility around earnings. Despite ongoing geopolitical risks and no fundamental changes, sentiment flipped 180° from yesterday's panic selling to aggressive buying, showing markets are oversold and eager to recover. The speaker warns against FOMO buying at elevated levels or over-leveraging, citing upcoming Japanese rate decisions as potential catalysts for another swing.
These notes were generated by AI and may contain inaccuracies.
Markets are having an incredible day, with Apple recently hitting new all-time highs. Apple is trading down 1.3% at $333 per share, while Amazon is trading at $235 per share. Apple is viewed as one of the most self-sufficient Magnificent 7 stocks that doesn't always move in line with the broader market or other tech stocks. At current levels, questions arise about whether Apple represents a good value for investment. The speaker notes that investing or trading right before earnings reports is a volatile, higher-risk period.
Markets have been trading irrationally today, with many chip stocks up over 20% despite no fundamental changes. Markets were technically oversold and gapped up, but this rally could continue if Apple and Amazon report better-than-expected earnings. Today's rally may be partially attributed to Microsoft's good earnings, while Meta reported concerns about over-investment and disclosed over $700 billion in capex guidance.
Despite ongoing escalation in the Middle East with a recent attack announced, markets do not appear to care yet. There was significant panic selling yesterday, particularly visible in QQQ, but NASDAQ appears super resilient and incredibly bullish today. This represents a complete 180-degree shift in market sentiment within just 24 hours, serving as a reminder to never be afraid to invest at oversold levels but also not to over-leverage positions.
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