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The other day I showed statistics of stocks reporting earnings both positive and negative being sold on the news.  This is rather unique and not welcome by strategists who have been touting the strong earnings as the narrative to buy stocks.  Last night Amazon, Intel, and Microsoft reported good earnings and all gapped up today but have sold off from highs.  These three did not gap up due to a short squeeze as they all have about 1% of their float held short.  This type of action has to weaken the fortitude of the buyers.  I was quite concerned with last night's Amazon reaction up 7% as I was set up short and knew I would be stopped out (by design 10% stop set with inception of trade).  It happens and you just have to own it and move on.  I do have more thoughts on Amazon and will address it on coming notes.

Next week is another big week for earnings and I expect the bull market with "sell the news" to continue.  I'm going to leave it here as I have a busy afternoon with client calls.  Have a great weekend.

Notable:

• US Markets - Sentiment increased a little, gap ups have been sold on the news
  
• Hedge Fund Telemetry Trade Ideas - Stopped out of AMZN, Added short more names
  
• Nasdaq Attribution - 62% of the attribution YTD has been one stock
  
• Currencies - Euro, USD, Pound Sterling, USDCHF
  
• Gold Update - I'm long a little and it's not a high conviction call as of now
  
• Bond Update - Bonds continue to bounce
  
• DeMark Screens - Daily, Weekly, Monthly upside/downside exhaustion signals within the S&P 1500 and Euro Stoxx 600 - Having a data feed issue with US stocks today
  

Here's a link to the Hedge Fund Telemetry market sentiment page with 40 charts of sentiment including equities, bonds, currencies, and commodities updated each day.   

SPX bullish sentiment is at 33% up from 25%

SPY still has a downside red Countdown on day 6 of 13.  

Nasdaq bullish sentiment is at 40% up from 35%

QQQ gapped up huge and has given it back.  The downside support is at 155.76 and the downside red Countdown remains on day 7 of 13

Dow Jones barely moved today

IWM Russell 2000 like the Dow hasn't moved much.  Its been all Nasdaq

Trade Ideas:  Stopped out of AMZN (I set mechanically a 10% stop on everything at inception)  Despite that mess the day isn't so bad with performance.  Added today:  2.5% short STX, HD, NVDA, and added 2.5% to MU.  Charts below

Here are the closed positions.  AMZN kept me up all night and often times the stop level is exactly where you wish you were initiating the position.  I'll take a week off of AMZN and reevaluate.  And I feel I was very forthright with my concerns with this particular position going into earnings.  Sometimes trading is like sausage making.  You love the taste/performance but would rather not see how it's made.  

NDX attribution YTD shows AMZN attributing 62% of the total gain.  Nearly 3x the next attribute MSFT.  Interestingly the largest weight in the NDX leads on the opposite side as biggest loser

US Dollar bullish sentiment is at 74% and nearing the overbought zone

US Dollar Index had a red upside Countdown 13 and has a green Setup on day 7 of 9 and has reached the upside Wave 3 price objective.  Maybe a little more upside before lower

Euro has nearly reached the Wave 5 downside price objective of 1.20

British Pound Sterling bullish sentiment is at 52% and likely will move lower tonight

GBP had a nice upside red Countdown 13 exhaustion and reversed as designed.  There is support here at 1.37 and is on day 8 of 9 with downside green Setup.  Last time it bounced

USDCHF did not stall with the recent green Setup 9.  There is now a new red Countdown and could continue .  Sentiment is very depressed for the Swiss Franc so potential for a stall is there

Gold bullish sentiment is at 36% and down from 43% the previous day.  This can go lower and I wish it was lower when I made the call to go long GLD yesterday.  124 must hold

AMZN from yesterday pre earnings.   Downside red Countdown and potential Wave 3 downside price objective of 1233.  

AMZN today.  Gap up and fade.  If it closes over 600 the wave pattern will revert back to upside Wave 5.  The Countdown will remain.  

AAPL reports next week and has been depressed with expected bad iPhone numbers.  I might cover this ahead of the report.  

AXP gapped up on good numbers but has faded.  I shorted this today with a 2.5% sized position.  

HD went up big yesterday and considering the home building material stocks taking it hard this past week, I feel HD could have some downside risk.  

MSFT had a decent earnings report and has seen a sell the news reaction after gapping up

MU gapped up today after INTC reported and has been sold down hard.  I doubled up the position

NVDA also gapped up on INTC and I expect another lower high and soon a lower low

STX Seagate was added as a short today after WDC reported earnings and is trading down 7%.  There still could be one more pop in this and I would likely double up the position with the 13

STX Weekly has some upside exhaustion and it's worked well on the upside and downside in the past.  Long time readers might recall back in 2016 I was very bullish in the low 20's when there were multiple time frames with exhaustion signals and very large insider buying.  

Bond bullish sentiment is at 25% up from 19%

TLT Bond ETF is a recent new long and it gapped up today and now has a price flip (trading higher that 4 previous closes - green 1)   I might add to this long

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