It may not feel like it — especially for Netflix NFLX, +1.18% shareholders — but Jeffrey Saut, chief investment strategist at Raymond James, says we could be in the midst of a “buying stampede.”
That’s a phrase Saut claims he coined back in the 1970s to describe rallies typically lasting somewhere between 17 to 25 sessions, with only brief pauses of up to three sessions. Four sessions in the red, and poof, just like that, the stampede is over.
“It appears to be the rhythm of the thing in that it takes that long to get everybody bullish enough to throw in the towel and ‘buy ‘em’ just in time for a trading top to arrive,” the strategist writes in a blog post.
If this is, indeed, one of those stampedes, says Saut, who provides our call of the day, we’re just 11 sessions into it, which means a burst of buying is on the way. Overall, he describes the current climate as a “stealth bull market” that’s setting up to deliver more all-time highs for the major stock indexes.
Why is it stealth? He recently explained to CNBC that while the Dow Jones Industrial Average DJIA, +0.18% is just barely higher for the year, the S&P SmallCap 600 SML, -0.45% and the Nasdaq COMP, -0.26% are both up double digits.
“Clearly, the U.S. economy is hitting on all cylinders and business optimism, for whatever reason, is leaping,” Saut said. “We will get more news on the economy this week.” (See The economy section below for more on that).
As it stands now, the premarket action doesn’t look like a buying stampede.
The marketStocks ended Monday mixed, and it looks like they could start Tuesday with a small drop. Futures for the Dow YMU8, -0.08% , S&P 500 ESU8, -0.10% , Nasdaq-100 NQU8, -0.12% are lower. Europe SXXP, -0.24% is under pressure, after Asia markets ADOW, -0.05% closed mostly with losses. Gold GCU8, +0.19% is up just a bit, while crude CLU8, +0.01% seems to be stabilizing a little after getting crushed yesterday.
Speaking of stampedes, one could be taking shape in cryptos. Bitcoin BTCUSD, +0.62% just logged its biggest increase in two weeks and is up nicely again this morning, briefly trading north of $6,750.
See the Market Snapshot column for the latest action.
The chart“But the P/E Was Only 260!!!!” That’s how the Slope of Hope blog’s Tim Knight started his quick post on Netflix’s abysmal after-hours action. “As I have no position at all in Netflix, I feel within my rights to respond to the stock getting the Kevin Spacey treatment after hours,” he wrote.
“Give me the same result with Amazon on the 26th,” Knight wrote, “and we can FINALLY be done with this goddamned bull market.”
Netflix shares NFLX, +1.18% are tumbling premarket after the company late Monday posted weaker-than-expected revenue and subscriber numbers for the second quarter.
Read more: Is Netflix falling down a mountain, or just tripping over a molehill?
The quote“Having sold out our nation on an international stage, Mr. Trump will now explain it all to Sean Hannity and Tucker Carlson? I’m guessing RT and Sputnick [sic] were unavailable. He owes it to our nation to sit down with a serious journalist.” — Former FBI director James Comey joins in the scorn being heaped on President Trump’s comments in Helsinki.
Does the Daily News count? Check out today’s cover:
And what about that hard-hitting interview with Hannity? Here are some of the highlights, courtesy of Vox.
Don’t miss: Russian charged with conspiring to infiltrate U.S. politics using gun-group front
The buzzThe numbers might have been there for Amazon AMZN, +0.52% , but Prime Day’s kickoff was a bit of a mess. If you spent any time trying to click on the items on sale, there’s a high likelihood you came across an image of some dog with the message: “Sorry, something went wrong on our end.” The e-commerce extravaganza is still underway today.
Read: Jeff Bezos just became the richest person... ever
That hotly anticipated Uber IPO appears to be taking shape. CEO Dara Khosrowshahi on Monday confirmed that the ridesharing company’s debut is likely to take place in 2019 as planned even if its profits don’t improve by then. Meanwhile, Uber is facing a federal investigation over alleged gender discrimination.
Papa John’s PZZA, -4.00% founder says it was a “mistake” to step down as chairman last week.
UnitedHealth UNH, -0.66% , Johnson & Johnson JNJ, -0.98% and Goldman Sachs GS, +2.22% have posted earnings ahead of the opening bell, while CSX CSX, -1.10% and United Continental UAL, +0.22% are due to report after the close.
The stat$113 million — That’s how much it cost to make Asura, China’s most expensive movie ever released. It could also become the biggest flop of all time. The movie was reportedly pulled from Chinese cinemas after its horrendous opening weekend when it made just over $7 million. Ouch.
The economyWe’re set to hear from Federal Reserve boss Jerome Powell at 10 a.m. Eastern, when he delivers his testimony before a Senate committee.
Read: Powell to defend pace of one interest-rate hike every three months
And see: The U.S. economy roars into fast lane, but some scratches are starting to show
Before Powell’s appearance, the Fed is slated to release data on industrial production and capacity utilization. We’re also due to get a fresh reading on a housing market index.
See: MarketWatch’s Economic Calendar
Random readsWork for Trump? Save your souls and quit now!
The Navajo Nation made a surprising and unsuccessful bid for gun maker Remington.
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Americans, there is a paradise for soccer haters.
This National Park is a “veritable greatest hits of Alaskan landscapes and wildlife,” yet very few people every visit there.
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