Turnarounds Seldom Turn

Warren Buffett once famously said that, “turnarounds seldom turn," when it comes to businesses trying to right the ship. Regarding Mobileye after earnings this morning, however, if the "turn" is directed by the Israeli firm's self-driving software it may defy Mr. Buffett's general axiom. 

On the MBLY daily chart, below, we can see the progress the stock has made thus far in 2017 after a lackluster back half of 2016. 

At this point, holding over $47 is going to be the next hurdle for bulls to improve upon recent success. But the spurts of buy volume this year combined with the improved price action offer some evidence that MBLY is on the come this year. 

Elsewhere, dip-buyers are out across the indices keeping the morning weakness shallow for now. A green Dow, as I write this, may be a sign that consolidations from extended conditions will yield sideways action instead of down, which of course would run counter to the bear thesis that the market is imminently topping. From a sentiment perspective, TSLA earnings tonight and the reaction may prove to be telling.