We have mixed markets to start the week. We will get a ton of earnings the next two weeks.
Europe is up small and most of Asia is closed for the holiday.
The debate now revolves around whether we will have a hard or soft landing. And where will interest rates be at the end of 2023?
These questions are important, but what's more important is your time frame and approach.
The bears growled on January 18, but then SPX held 3885 and the bulls took control. SPX cleared 3926 Friday to see 3972, keeping both sides on their toes.
SPX futures are flattsh. We'll see if 3950ish holds to keep this pattern going.
Then we'll see if the intermediate downtrend line gets cleared around 4015ish.
QQQ broke its ascending channel last Wednesday but snapped back very fast to keep both sides on their toes. There has been lots of nice trades. QQQ’s cleared $277 to see $283ish Friday. We'll see if we digest higher to keep Friday's action in control Active support is $280ish. Watch the leaders. NFLX reacted well on Friday to help sentiment.
Now let's get into some individual names:
TSLA became a “Go To Long” again on January 6, giving traders many ways to make money. On Friday it cleared $129 to get me long again. It's up this morning to trim and trail. Let's see how it handles last week's high of $136.68. A move above that could mean more momentum, but remember that earnings are on Wednesday.
AAPL is just a tactical trade until earnings. Last Wednesday, it gave a way to sell. And then the $133 area held to buy it back. Watch it for sentiment. $138.81 is last week's high, and then $140ish. Earnings are next week. Today it's up a bit. Not much to do here but watch it for market sentiment
NFLX acted well after earnings Friday. Now we'll see if it can protect the earnings gap. Swing longs need it to hold $332ish. If it can hold that for a session or so, maybe there's a continuation trade. See if it clears the post-earnings high of $344 and watch it for risk appetites.
META’s been amazing this year. It held the 8 day Thursday to get me back long. On Friday it cleared the $137 area to manage. I'll try and stay with it, but not through earnings.
GOOGL got me long Thursday as it was super strong. Someone knew the jobs cuts were coming. I held through Friday as it hit $98.30. I'll stay with it for now. The 200 day can happen, but $99.50 is the first pivot above.
Scott Redler's Positions Dislosure as of 2023-01-23 at 7.27.50 AM