We’re seeing largely random trading action ahead of the open Thursday, and I wouldn’t make much of it.
I say that a lot, and the key thing behind what that means is we shouldn’t take something that’s totally random and give it too much credence. The market is hard enough to read in that regard…
The bond market (TLT) is opening a half-point lower and if it breaks current levels, interest rates could stay higher for longer, putting a lot of pressure on the market.
Remember, lower bonds mean higher rates. Higher bonds means lower rates. And higher rates are bad for stocks!
The ongoing rally in the Nasdaq 100 (QQQ) is concentrated in fewer and fewer stocks day by day as the index consolidates before the next big move higher or lower.
Same thing is going on in the Dow (DIA) and I don’t like the fact that volume has been falling.
Volume diverging with price often means we’re about to start pulling back…
The key thing driving markets right now is earnings, and we still have a boatload of big companies yet to report.
We have a stock I think is going to pop, Arista Networks (ANET), as well as
I’ll cover all that and more in this morning’s “Premarket Must Watch” video!
Roger Scott Trading
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