Stocks are down big Wednesday morning on the heels of poor earnings from Tesla (TSLA), and an announcement from Google parent Alphabet (GOOGL; GOOG) that AI may not be all it’s cracked up to be just yet.
I’m not seeing volatility up all that much, which tells me that these earnings misses and subsequent falls may be a bit of an overreaction.
As long as the VIX Volatility Index stays below the 17 level, we’re probably OK. Volume is really low right now, so it’s really easy to push stocks around. If it breaks below 15, then it’s likely going to come back down.
Still, we must be careful in these chip stock and tech names, like I’ve been saying all week!
Crude oil is at the 200-day moving average, but I don’t see it going much lower than here. In fact, the EIA Petroleum Status Report at 10:30 a.m. ET today, we may begin to see a shift.
I expect bonds to rally from here…
I’ll cover all that, my daily hitlist of longs and shorts and more in this morning’s “Premarket Must Watch” video!
Roger Scott
Roger Scott Trading
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