04-08-2020, 10:09 AM
(04-08-2020, 09:59 AM)divmenow Wrote:(04-08-2020, 09:26 AM)fenders53 Wrote:(04-08-2020, 08:58 AM)divmenow Wrote: So AAPL, DRI and TWTR all upgraded to buy this morning. Very interesting. I can’t remember the last time I saw an upgrade lol. Maybe we have bottomed. Hmmm
There were a few upgrades about the time we bottomed the SPY and some companies were getting way out of hand on the downside. Most of the analysts seem to have froze due to lack of updated data. Some companies will be in their pre-earning report lock up periods soon, if they aren't already. We really do need earning #s soon, for better or worse.
The earrings are going to suck.. Just looks at all these companies announcing Withdrawing 2020 Outlook and Long-Term Outlook. MCD was the latest today. Pretty grim if you asked me. But don't worry these stocks will all trade higher again based on no earnings or fundematials.
The Fed keeps buying up stocks to stay afloat. But that can only last for so long. At some point this will end. Pretty scary if you ask me going forward.
The Fed has not bought a single equity share over the course of its existence. Section 14 of the Federal Reserve Act sets the scope of open market operations, and equities are not included within the scope of its purchasing authority. The Fed cannot legally buy any shares unless Congress changes the law.
They are, however, accepting equities as collateral for purposes of issuing short term loans to Primary Dealers.