It appears that the markets are attempting to build some support for the next move higher. Yesterday, a lower market open was bought and then faded, which is a good but not perfect sign. By the closing bell losses were light. However, the NASDAQ and growth stocks remain market laggards. We will need these stocks to provide leadership before the next advance can take place. Until then frustrations levels will remain elevated.
The quarter ends on Monday. Normally, the penultimate trading day of a month tends to be positive. Futures indicate a positive open today. We have not had a positive open hold since last Friday. For the market to get back its mojo we will need to have a strong open hold through to the close.
Red Hat Reports Results
After the market closed yesterday, Red Hat (RHT) reported better than expected results. The stock rallied before the conference call took place. Then on the conference call, management issued guidance below analysts’ expectations. The stock erased gains and posted a small decline which is extending to this morning’s pre-market. This is just another case of playing the under promise – over deliver game.
Larry Kudlow Will Host His Last Kudlow Report Tonight
Tonight Larry Kudlow, will be hosting his last Kudlow Report television show on CNBC. I will be forever thankful to Larry Kudlow and Jim Cramer for putting me on their Kudlow & Cramer television show for which I was a guest many times. My first appearance on that show and any other television show was in 2003 with famed stock market analyst, Elaine Garzarelli, who is well known for predicting Black Monday (the stock market crash on October 19, 1987). I have to tell you, I had so many glitters that I called my cousin, famed actor Anthony Heald to get some tips as to how to conduct myself on television. It was an honor and pleasure to be on the show with those Wall Street legends.
Larry, Jim and I spent several shows sparring over the Martha Stewart trial, for which I was arguing to bet against Ms. Stewart and her namesake company, Martha Stewart Living Omnimedia (MSO). While Larry and Jim argued against my position, they were very open to my opinion and gave me the opportunity to communicate that to their viewers. In the fullness of time I was on the right side of the trade, which they acknowledged. Later on, I put together a Martha Stewart video case study with the help of CNBC for my courses at Seton hall University. While a Republican and perma-optimist (note I did not say perma-bull), Larry attracted and gave respect to economists, investors and politicians of all thoughts and persuasions. He has implanted firmly in the mind of investors two notions: “King Dollar” and “Profits are the Mothers Milk of Stocks” which are certain to stand the test of time. While the Kudlow Report will sunset, Larry will still be around to enlighten us with his knowledge. Thank you Lawrence Kudlow for all that you have done for me and investors around the world.
Disclosure: At the time of this commentary Scott Rothbort, his family and/or clients of LakeView AssetManagement, LLC was long RHT — although positions can change at any time.
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