Market On Open, Friday 11 October

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Not This Time, Marvin

by Alex King, CEO, Cestrian Capital Research, Inc

The Tesla Optimus robot could have saved capitalism last night, but didn’t. At least not so far. $TSLA stock took a bath overnight and in early trading today; all is not lost for TSLA bulls, however, since the stock continues to just trade in a standard technical pattern up from off the 2020 lows. All $TSLA has to do, I think, is hold over $200ish to remain in a bullish pattern.

On the other hand, JPMorgan may have gotten earnings sentiment off to a good start, with more a positive net income story than the market was expecting. Bond volatilty is falling - the MOVE index dropped nearly 5% coming into today - and the Vix has finally put in a slight drop. Barely measureable, but a drop nonetheless. So perhaps the cloud hanging over the Nasdaq (which has yet to follow the S&P500 or the Dow to new all time highs, not since July has the Nasadaq hit the heights) may start to lift.

Personally I remain with a bullish outlook but the number of smart folks sounding skittish is rising. So as always I don’t want to rely on any kind of “thesis” or “feeling” about markets but instead trust in pattern recognition and price action to determine my outlook.

And so to work …

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