Going into the weekend, the following thoughts are right at the front of my mind and will more than likely take up space there all weekend till we open for trading Monday morning.
Is the move today for real or is it just another oversold rally and come Monday morning we get slapped in the face?
Is the Greece mess finally behind us once and for all? Has the cabal of European lenders and Greek politicians finally found a solution that will allow the Greeks not only to pay back their loans on time but also allow the country to stem the terrible death spiral it's been caught up in? Will the Greek people finally see the light at the end of the tunnel? Will the youth there be able to hope for a decent job? Will the pensioners be able to stop scrounging to make ends meet and live out the rest of their days with dignity?
Have the Chinese authorities successfully stopped and reversed the decline in their equity markets, if only for two days in a row? With more than 1,300 stocks still not trading (suspended from trade), can this two-day bounce even be trusted? In addition, with so many manipulative moves designed to stop the selling, how long will the markets hold up? My contacts in the Far East have been saying there are further stimulative and market engineering moves expected from the Chinese authorities over the weekend.
Can this bounce in Apple (AAPL) be trusted? Like Professor Kass said yesterday, "The general was shot and in the hospital -- condition unknown." AAPL is important to the health of the markets. Come earnings time every quarter, the negative chatter/articles/innuendo/guru-talk reaches fever pitch. However, this quarter AAPL is at risk of going flat on the year before earnings finally arrive. Is chatter about a 90% drop in Apple Watch sales true? Was that report from Slice on the watch drop legit? Who is Slice? (Apple is part of TheStreet's Action Alerts PLUS portfolio.)
Is the negative wealth effect from the stock-market pounding in China real? If it is, it will affect virtually every sector there is given that the Chinese are huge buyers of pretty much everything. In case there is a fallout as a result of the negative wealth effect, can India pick up some of the slack? Can the U.S., the world's largest consumer, pick up the slack? If not, guidance going forward will be weak at best this earnings season, making almost every sector game for dark side shots.
With all these thoughts swirling in my head, it is time to wrap this up and wish all of you a safe and good weekend with your loved ones. See you bright and early Monday morning.