What Will the Ugly Big Tech Earnings Bring?
Plus Friday's Watchlist
TLDR: Friday Watchlist at the bottom of the post.
Reminder of where to find my full Watchlist on TradingView
I believe tomorrow is going to be hard to navigate. Reason being, we’ve had a major run up, the market squeezed but didn’t completely capitulate, and after-hours today, we got bad earnings from AAPL 0.00%↑, AMZN 0.00%↑, and GOOGL 0.00%↑.
Is this one of those bad news is good news? Meaning from a fundamental standpoint, the market thinks we have cooled off significantly so the Fed pauses the rate hikes? Does it mean job losses to tame inflation and wage growth? Who knows. I don’t think the market knows and that is why I believe it will be hard to navigate tomorrow. If that is the case, know your levels! They will come into play if we get major swings and reversals.
Because of the unknown action, big gap up, and questionable earnings, the watchlist for tomorrow is small. We need some time to see how all this plays out. Stocks are going to setup to go up or down, it’s just a question of how much time is needed. It may happen tomorrow if we get huge drops or massive runs, we just have to be patient and pick our setups.
Today’s Watchlist Results:
With the big gap up pre market, all of the watchlist voided out above their trigger levels. I had a few more alerts ready to go out, but I decided against it because I wasn’t willing to take the trades. Why? In hindsight most of what I was looking at worked out for a nice profit.
Those who have been following me for awhile, know I like to find runners. I’m not happy with 15-20% here and there. If I can’t see a clear path to 50% and then 100%+, I usually don’t put the trade on a watchlist, let alone take the trade. Some examples that would’ve worked today include DASH 0.00%↑, NVDA 0.00%↑, SQ 0.00%↑, and TSLA 0.00%↑ over the next set of resistance levels.
I wound up sitting on my hands most of the day and watching. It’s a total bummer to miss huge days, but my trading style doesn’t suit gap days very well unless there is a pullback to close the gap. And we never got anything that remotely resembled that.
#ES E-Mini Futures
Upside: **4180**,4215, 4260, 4300
Downside: 4110,4080, 4050, 4020*, 4000,3980-3975, 3950, 3915*
The S&P Futures market closed right above the all important 4180 level. I have it listed as an upside level due to the pullback after hours with the big tech earnings.
Let’s recap…Last night META 0.00%↑ earnings came in huge with a massive positive repsonse. We gap up premarket. The market runs all day except one major 50pt+ pullback with about 2 hours left in the day. That pullback bounced hard right back up to the highs of the day by the bell to close at 4190. Next, after hours, we get Apple, Amazon, and Google all reporting poor earnings and guidance.
What does this mean for tomorrow?