What made Friday’s action interesting wasn’t just the triple digit decline in the Dow on higher volume but what the response was to Intel’s and JP Morgan’s earnings releases; both are leaders in their space, both reported EPS that was 10x higher than a year ago, and both stocks finished the day sharply lower (and the SOX index closed the week down a hefty 6%).
There was a time, little more than nine months ago, that quarterly numbers like that would have sent their share prices sharply higher. The fact that their stock prices fell is a full testament to the view that the era of the ‘green shoots’ is officially over and after the most profound bear market rally in recorded history, what we have on our hands is a market that is more than just fully priced.
---Rosenberg, 1/18
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