Good earnings are not enough anymore

This morning I analayed that the market is getting much more selective, and honestly today was a pretty good example.

$AMAT beat expectations and guided higher… stock still fell around 5%.

Meanwhile $RDDT jumped around 12% on S&P 500 inclusion and $SNDK gained 7%+.

So I don’t think the important question right now is simply “is the market bullish?”

It probably still is.

The better question is what expectations are already priced into each stock?

When expectations become too high, even really good results can disappoint the market. That was basically the main thesis in my pre-market note this morning, and today the tape confirmed it pretty well.

If anyone interested I can share the full article.