Down goes the Dow

Highest margins of all time.

Is that bearish or bullish? The classic view is that it is bearish since things can't get any better and are likely to get worse...but what if companies have finally figured out how to use technology to improve margins, and global labor lets them keep margins high or even go higher?

Qs like this are why this biz is endlessly fascinating to me.

https://twitter.com/charliebilello/status/1057645615902023686

Bought BA and GE. Have at me.

agip wrote:

Highest margins of all time.

Is that bearish or bullish? The classic view is that it is bearish since things can't get any better and are likely to get worse...but what if companies have finally figured out how to use technology to improve margins, and global labor lets them keep margins high or even go higher?

It better be bullish. I have a lot of 401 (k) retirement dough tied up in the stock mutual funds and I want a piece of the action. ?

To hold for how long?

Maserati wrote:

To hold for how long?

Likely at least a year.

I like BA over that time frame, maybe even longer. GE will need that time to get its house in order. I thought about GE, but it’s messy—but cheap.

These individual stocks...remember when someone on here was hot on F? Agip maybe? Couldn’t have turned out very well

Maserati wrote:

I like BA over that time frame, maybe even longer. GE will need that time to get its house in order. I thought about GE, but it’s messy—but cheap.

These individual stocks...remember when someone on here was hot on F? Agip maybe? Couldn’t have turned out very well

GE? You mean one of the only stocks missing out on this rally. My puts on GE are the only thing keeping me afloat right now. I'd target $8 price for buy personally. They really don't have any good news going for them at all I think there's room to drop more.

I think I heard the jobs report on Friday is rumored to beat expectations big time which could mean the Fed will get even more aggressive to cool things off.

F was Ryan Foreman. He hasn’t posted in awhile.

Make me some dough wrote:

It better be bullish. I have a lot of 401 (k) retirement dough tied up in the stock mutual funds and I want a piece of the action. ?

You mean you didn't convert to Cash (like "MOST" investors do) when the market hit bottom last week?

Big Dog Investments wrote:

I definitely rate Ford a "buy" right now. Unfortunately I have no cash on the sidelines at the moment and am not willing to take any profits quite yet, so I won't be partaking. I envy those of you who are getting some.

Big Dog you were hot on Ford at one point.

Since then it has gone down from $12.66 to $9.46 close yesterday, with only maybe one brief blip above 12.66 to about 13.10 for a week early in 2018.

Just FYI

BTW, I think your post was made on 07/29/2016

Maserati wrote:

BTW, I think your post was made on 07/29/2016

I must have found some cash because I bought a small position about 2 weeks later that I’m still holding.

Rumor has it Mnuchin told the PPT no steak lunches or high balls until we hit new highs on the Dow.

You Small Cap fans what’s up with the underperformance on the rally?

Ghost of Igloi wrote:

Rumor has it Mnuchin told the PPT no steak lunches or high balls until we hit new highs on the Dow.

That’s just stupid. You obviously have no clue how that works.

Ghost of Igloi wrote:

You Small Cap fans what’s up with the underperformance on the rally?

small caps usually underperform on big rally days - it's so much easier to just throw money at highly liquid big cap and tech ETFs and stocks - when you need to make a lot of money with the herd, you don't go to the small cappers.

That said, small caps seem to be doing worse than foreseen. The conventional wisdom was that in a trade war situation small companies doing domestic biz wouldn't be that affected. Turns out that many are getting hurt by the higher raw materials costs from tariffs.

Small caps did just 30 bps less than big caps today, going by SCHA and SCHX. Not a huge deal.

Go GOP. Hurray.

“The volatility you’re seeing is in reaction to a market that has continuously had a buy-the-dip mentality that is being challenged now,” said Rick Bensignor, president and founder of the Bensignor Group, former Morgan Stanley Technical Analyst. “The market is finally putting people’s beliefs to the test.”

agip wrote:

Ghost of Igloi wrote:

You Small Cap fans what’s up with the underperformance on the rally?

small caps usually underperform on big rally days - it's so much easier to just throw money at highly liquid big cap and tech ETFs and stocks - when you need to make a lot of money with the herd, you don't go to the small cappers.

That said, small caps seem to be doing worse than foreseen. The conventional wisdom was that in a trade war situation small companies doing domestic biz wouldn't be that affected. Turns out that many are getting hurt by the higher raw materials costs from tariffs.

Small caps did just 30 bps less than big caps today, going by SCHA and SCHX. Not a huge deal.

Go GOP. Hurray.

Small caps are not underperforming on the rebound in general. Pull up a chart for the last 5 days. What you find is that TNA has gained 6.9% and SPXL (equivalent Large Cap 3x leveraged) has gained 4 %. So no underperformance in general. Having positions in both, i see that they trade off good days, though small caps got beet up more in this downturn and seem to be recovering more as well.

Rick Senior wrote:

“The volatility you’re seeing is in reaction to a market that has continuously had a buy-the-dip mentality that is being challenged now,” said Rick Bensignor, president and founder of the Bensignor Group, former Morgan Stanley Technical Analyst. “The market is finally putting people’s beliefs to the test.”

This volatility has been around for months. Nothing new to see here.