The Opportunity In Pullbacks

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In his Daily Market Notes report to investors, while commenting on the opportunity in pullbacks, Louis Navellier wrote:

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Hoping for Calmer Waters

In just two days last week, the market saw both the all-time greatest market value drop of a single company and the greatest riseLast Thursday Meta Platforms Inc (NASDAQ:FB) fell $232 billion, 26%, in one day, on the news of their first drop ever in daily users, along with a downbeat outlook.

Then, the next day,, Inc. (NASDAQ:AMZN)’s shares rose 14%, or $190 billion, as numbers were not as soft as feared and Amazon announced a $20 price increase in its Amazon Prime subscription.

Just the prior week, Apple Inc (NASDAQ:AAPL) had reported better than expected numbers and saw its market value spike $179 billion, second only to Amazon’s rise as the most ever, and leading to a major market rally, especially in technology names.  Apple also holds the second greatest one-day loss ever of $182 billion in September of 2020.

Unnerving Uncertainty

These huge price swings in very well-known and widely analyzed companies are a bit unnerving as far as investors' sense of predictability of lesser stocks and the market in general.  Uncertainty seems to be the watchword for so far in 2022 with the number of Fed rate hikes being speculated on, along with what the impact may be to interest rates and earnings multiples of proposed quantitative tightening (i.e., the runoff reduction of the $9 trillion Fed balance sheet), when will the highest inflation numbers in 40 years peak and start to fall, wildly gyrating cryptocurrency prices with little explanation, when the pandemic will become an endemic or instead will a new variant start a new wave, and whether Russia will invade Ukraine.

Opportunity In Pullbacks

Perhaps the least of current market uncertainties is that the high level of volatility is likely to go on as the earnings announcements continue.  Notable earnings announcements in the week ahead include Tyson Foods, Inc. (NYSE:TSN) & Amgen, Inc. (NASDAQ:AMGN) (Monday), Chipotle Mexican Grill, Inc. (NYSE: CMG), LYFT Inc (NASDAQ:LYFT) & Peloton Interactive Inc (NASDAQ: PTON) (Tuesday), Toyota Motor Corp (NYSE:TM), Uber Technologies Inc (NYSE:UBER) & Walt Disney Co (NYSE:DIS) (Wednesday), Coca-Cola Co (NYSE:KO), PepsiCo, Inc. (NASDAQ:PEP), Expedia Group Inc (NASDAQ:EXPE), & Kellogg Company (NYSE:K)’s (Thursday), and Newell Brands Inc (NASDAQ:NWL) & Under Armour Inc (NYSE:UAA) (Friday). As before, be opportunistic by adding quality names on pullbacks that the current high volatility presents. 

Coffee Beans

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