Both companies reported earnings after the close on Wednesday.
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00:00 what happened yesterday, and of course,
00:02 what happened in the overnight action,
00:05 as it seems like we're in another rotation station.
00:08 - I mean, let's just talk about
00:10 what's happened last night here.
00:12 And you have, we'll just summarize it all,
00:15 and then we'll get into the details on all these reports.
00:18 But you have Netflix, which actually had an okay report,
00:21 but the stock gets hammered.
00:23 You have Tesla, which was holding up,
00:25 and then the conference call happens,
00:26 and the stock gets hammered.
00:27 You have the Qs getting bashed,
00:29 every tech stock getting hit hard last night.
00:33 And what, and then you start seeing it go across the board,
00:35 and they start hitting all stocks.
00:37 But what has happened here this morning?
00:39 They're like, "Oh, wait a second, wait a second.
00:41 "We don't just sell stocks, though.
00:42 "If we're gonna sell tech stocks,
00:44 "we've gotta buy something else."
00:46 So you've got the banks showing continued strength,
00:49 which they've been building on.
00:50 The IWM is up substantially here.
00:53 And there's another, like obviously, rotation.
00:57 The value trade.
00:57 So they're like, "Well, we're not gonna buy tech.
00:59 "We're gonna buy value."
01:00 And that's the way it's gonna be.
01:02 And this market just has unbelievable rotation
01:06 that holds it up.
01:07 If you're a bear, and you see Netflix last night
01:11 down 40 points, and Tesla down 15,
01:13 and those have already bounced from the lows.
01:15 But if you saw that last night,
01:17 and you said that S&Ps are gonna be down four points,
01:20 you'd be like, "Well, that doesn't even make any sense.
01:21 "Of course it's gonna be down more than that."
01:23 Nope.
01:24 So rotation, absolutely incredible.
01:26 Bulls continue to remain in charge.
01:29 And if you are a bear,
01:31 you have got to be massively disappointed
01:34 to come in and see the S&P down four points here.
01:37 This is problems for the bears.
01:38 - Well, I can tell you at least,
01:40 I'm in that bear camp a little bit, Dennis.
01:42 I didn't go and short Tesla or Netflix,
01:45 but I played a little SQQQ overnight.
01:48 And that's just 'cause I was thinking that,
01:50 yeah, maybe we get a little bit of a hit, little leak.
01:52 It was just an overnight swing.
01:54 It's not that I think that,
01:55 we're gonna destroy the Q's today,
01:57 but I thought we could get at least some pullback
02:00 because I looked at that Q's daily chart,
02:03 and I could see it pretty extended away from the 90 a May.
02:06 And a lot of times we're getting these little moves up,
02:08 couple of days green, and then a couple of days pullback.
02:11 And it doesn't mean that we're gonna crack here.
02:15 Sorry for my camera.
02:17 But yeah, just gonna be watching the Q's,
02:18 especially today to see if we do see a continued leak.
02:21 But I see it the same way you see it, Dennis.
02:24 The rotation is wicked.
02:27 The financials getting strong again.
02:30 Industrials are strong.
02:32 If energy can come and lift again,
02:34 it just seems like even though
02:36 when we get a hit on technology,
02:38 the other sectors just continue to rise.