Interactive brokers chief strategist to Talk a little bit more about i guess Where the market's head is at right now Stephen obviously there's a lot of Jitters at least in some of the Day-to-day moves here longer term are You Are you confident do you have some Confidence here that the fed is going to Be able to thread this needle Uh good good afternoon romaine Short answer no um i think that it's What the fed is being asked to do is Incredibly difficult and i think Investors have been giving giving the Fed some degree of leeway certainly Equity investors are much more Charitable i think than bond investors But what what they're being asked to do Is incredibly difficult i'd love to Think that they can thread this needle Um but it what they're being asked to do Is deflate one of the giant biggest Balloons that they've ever inflated and It's hard to do that without some side Effects Steve curious what you think about the Internals of the market taking a look Quickly here at the 100 day which is Slowly about to cross back down over Through the 200-day moving average on The s p How do the internals look to you in this Market
Um the internals look a bit dicey now One good thing is until the events of You know until let's say yesterday Afternoon i would have said that there Had been a very healthy rotation uh we Were getting out of some of the the big Big cab tech leaders into into some Broadening which is a good thing you Want to see broadening leadership uh the Problem again when i was you know in Terms of the market mechanics if people Start to abandon the stocks that brought Them to the dance the mega cab techs um And and i'm actually excluding netflix From that equation at this point um It's hard the math just says if people Are leaving those stocks The broader indices are going to have Trouble You know i'm wondering also when you Look at the s p in the three day decline Despite some promising earnings we've Seen How much of this is because of inflation To the companies that are feeling it and How much of it is because Investors just don't really believe that The consumer will remain this strong Into the year It's tough shinali because um i think Right you know i think the netflix Results yeah there's a there's a lot in There to unpack but the bottom line is People were people are cutting back on
Their netflix subscriptions they're Starting to go towards staples kimberly Clark is you know is fine in the short Term because people are not going to Skimp on tissues and toilet paper but They may skip on that extra streaming Subscription um i think you know you're Starting to see A time where defensiveness pays another Part of the problem is we got off to the Earnings season with banks which was Okay but i i always consider you know if If earnings is a nine-inning game banks Are sort of the national anthem You need to do them to you need to get Through it to get the game started but Whether or not bank america had a good Trading result doesn't really play into The the real meat of earnings season and We're getting through that now okay well Let's go there uh steve here because Next week we're going to get a lot of Names that uh do fill out that tech Space that discretionary space the Microsoft's apple amazons of the world Meta platforms which today is trading at A 52-week low you get qualcomm general Motors a whole host of companies that Should give you some more insight into Consumer spending and to a certain Extent business spending here If we get a significant misses not only For the quarter but maybe a significant Disappointment with regards to that
Guidance do you think that the market Has i guess more room to move lower or Has some of the worst case scenarios Been priced in Um it really depends how bad it is one Of my key things coming into earnings Season was how would we deal with Disappointment um in the case of netflix Not well um and in the case of other Stocks not well um i think you know There's a lot of the problem you have is So many of these stocks have such lofty Growth expectations baked in think about It this way tesla blew out its numbers 30 above where people thought it was Going to be and the stock moved up call It seven percent it did fade a little Bit at the end of the day with the Market well seven percent up was what Was expected going in that was literally What i published was the option market's Expectation so essentially you had this Great Result and it was priced in anyway so i Think what we're seeing is some of the Deflation of some of the deflating of That um enthusiasm steve i want to be Careful here because our audience are Really long-term institutional buyers so I don't want to hype up a two percent Loss on a friday going into a weekend But do any of these sort of two to three Percent sell-offs provide attractive Entry points
Oh absolutely taylor you know When you have when you have moves like This there's always stuff that gets Thrown out that gets thrown aside You know along the way there's always Going to be bargains to be found What we're getting is volatility and Volatility works in both directions and So if you're in if you're a long-term Investor you want to use this as your Opportunities hopefully you have you Have your your entry points in mind and In some cases the stocks are going to Provide them it does get a little Trickier with earnings coming out Because we don't really know what's Going to happen with with them that's That's one of the on that's one of the Known unknowns in the market but yeah i Don't i don't want to get people freaked Out by by a two-day swing like this but I do want people to be aware that this Is going to be what we get is volatility Up and down
