Predictable volatility- presented itself in an absence-of-bids much of Wednesday, as while there's no reason for protracted absorption of supply (buying) as yet, there is just incremental (fearful) liquidation.

Freepik

After all, who wants to buy ahead of 'war expansion', which was threatened by Iran today, and even a former US official (in Intelligence). Israel should now be positioned as they wish, the U.S. nearly so.

Plus, you had the United States exercise its veto power in the Security Council today, as the U.S. is not going to compel a ceasefire upon Israel at this point. I realize the terrorist hospital attack continues to be spun as propaganda trying to elicit support for Hamas, which has affected the so-called 'Arab Street' that doesn't want to be bothered by the actual facts, one the origins were known.

A combination of 'war avoidance' and yields slowing down their rises, might it seems be a combination for 'better markets', but we're not at that point as yet.

It's probably that simple, with an absence-of-bids dominating what normally is a tougher seasonal time in October, aided-and-abetted by serious geopolitical challenges, which combine to revive the specter of even fearing World War 3.

Market 'X'-ray: 

Nobody is pleased with the Hamas 'spin' of Tuesday's hospital explosion, which clearly was an errant terrorist rocket hitting the parking lot of the hospital (plus drone footage and voice chatter between terrorists as they ask each other if it was 'theirs' and misfired), as I mentioned in intraday videos as well. Of course facts didn't prevent protest or blame-games by protagonists for Gaza (good word?). This whole scenario could set-off strikes by Hezbollah upon Northern Israel, or for that matter set-the-stage for Israel's 'next phase'.

Realizing that there was little or no interest in buying stocks today, nor should there be. That will change, but it's also October filled with crosscurrents, and it can culminate meekly, or with some real drama, as or if wider war ensues.

Also, 'if' there is a back-channel deal with the terrorists to release hostages, it might take the form of a 'release' at Gaza's Southern Gate into the Sinai, and then a rescue (or simply airlift) by U.S. Marines, who are reported (as actually I suspected) aboard USS Bataan, near Eilat, the Israeli resort city by the Red Sea. Bataan has fighter jets, landing craft and Ospreys, all which are capable of assisting with force protection and movement of the hostages, if we are fortunate to obtain their release presumably before a conflagration phase.

Note: the President will deliver an 'Address to the Nation' Thursday evening. It is impossible to know, if by then, a significant military action will have begun by either Israel or The United States or updated overview of America's stance.

After the Close, Netflix (NFLX) did ok (we're not fans), while Tesla (TSLA) (also not fans but are of suppliers) missed on both top-and-bottom lines. Yes TSLA shares were relatively neutral in the wake of the 'miss'. Elon Musk likely speaks later. They do say they expect cybertruck deliveries to begin this Quarter.

Elon has said he's willing to 'sacrifice margins to sell more cars', and that's a good snapshot of their picture. I mentioned looking at a Model X at a nearby Mall display a couple weeks ago, and was surprised that a $10,000. reduced price still had it at $79,000. MSRP, which I thought wasn't much of a bargain. 

(Of course ON and ST Micro are suppliers to Tesla, and AEHR does much of the wafer (chip) testing, but that relates more to volume than to 'price' levels.)

Elsewhere.. LAM Research beat numbers, and that's a semi-equipment firm. I think it (down on the news and we don't follow it regularly as it's a $600 stock that already had its huge runs).. it and others might be potential suitors one of these days for something like AEHR Test Systems (AEHR), which broke support and recovered only a bit towards the close (notably volume picked-up down and up, with 60k shares on the Close). AEHR had a fairly obvious 'dome' pattern for a couple months, which we were optimistic might be negated by news, but so far no particular contract news was forthcoming. Will that change soon?

On the Netflix jump and good guidance I'd still be careful, streaming is fading in terms of consumer enthusiasm, and now the 'free' networks are recovering from the strike, which may have helped attract viewers to streamers while that was ongoing.

In late going: 

Netflix's up a lot (like 40), Tesla is down hard (by 11), Nvidia off by 17 or so, and LAM down a dozen or so. Generally, stocks are having wide after-market moves given a paucity of buyers 'or' sellers, hence shares move around a lot (wide spreads). Even AMD is down 3 more, without any news.

For AEHR, I suspect it was 'sell the rumor and buy the dip' on Tesla missing, and the EV market slippage in-general. Now you have an Annual Meeting in a week or so. Imagine if the ST Micro contract just happens to be 'in the wings', as that alone would thrust AEHR back up after this 200-DMA breakdown. The Company is doing fine, doesn't need to draw on cash lines, and well, heavier than I'd like to see, but that also likely washed-out all who can't take the heat. I don't like the heat either, but this stock has had these wide moves for years.

Bottom-line: 

With President Biden midway back to the U.S. (barring surprise landings to visit other allied leaders), and the UN Security Council meeting a non-event, the path is clear to next stage, presuming that's forthcoming.

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