Morning Market Thoughts

Good morning. Futures are down this morning, though it really doesn’t amount to anything significant because we are still in a tight trading range. So the overall market conditions are unchanged — don’t be looking for big gains until the market is ready to give them. That time will come — it always does. But for now, be more selective in your stocks and stay involved. Remain engaged.

Facebook (FB) reported Q4 results last night that beat the street’s expectations, but they also noted that revenue growth will fall “meaningfully” in 2017. This isn’t the first time that this cautionary note was mentioned, but it did knock the stock down in after hours trading. FB ran as high as $138, and is now down at $134 — just 80 cents above yesterday’s close. So, I hate to tell you facebook fans this — but I don’t think it’s very likely that you’re going to get the breakout you’ve been wanting.

Cirrus Logic (CRUS) is a semiconductor company that I was watching yesterday because it was breaking out of a tight squeeze on very high volume. But the company reported earnings after the close…and promptly fell 10% and is resting at support. This stock will now have a lot of work to do before it resumes upward. Timing is everything, and I think this will take some time.

Re/ last night’s Strategy Session — I covered Yelp (YELP) and analyzed the pattern that’s setting up YELP for a nice move. Earnings are due in a week, and we might see the stock start running a bit over the next week as investors anticipate strong earnings.

I’ll be in the forum this morning, and hope to see you there. Great dialog this week and I am very happy to be back in the mix. We will be hosting a Q&A session webinar next week, and you’ll receive the specifics this weekend. And look for more frequent Q&A sessions. I’m sure it’s frustrating to attend a webinar, and not get answers to your questions. So we’re going to be doing them more often.

Have a good day.

–Dan

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