Weeklies to Watch as Market Potentially Sets for Next Big Move
Despite all the bad news the market continues to be extremely resilient as the SPX-500 tightens up its year-long consolidation. Earnings were expected to be terrible yet most companies have beat their numbers. The Fed meeting this week is the major event on May 3rd with AAPL reporting on the 4th. Breadth continues to be poor but there are many companies showing great strength and outperforming the underlying market. Generally, the market seems to be rewarding companies generating cash as more speculative tech-ish investments remain a mixed bag. Focusing on those better companies, beating earnings, and gapping higher is my focus.
SPX Cash Weekly-Been watching this build for months at this point and as we get more and more information it looks more likely we are going to bust through this huge resistance level. December pullback shallower than October, March shallower than December, and this recent “pullback” looks to be more of a shakeout. Lets see if the old saying “shakeout before the breakout” holds true once again. If we can push 4200 a new range opens up to 4600-4800 with major support below the market.
QQQ Weekly-An F U candle this past week. Trade down, pull in the shorts, shakeout the longs (me), then F U back to the upside fully engulfing the three previous weeks. Very positive action that often leads to upside follow through.
IWM Weekly-Small caps remain the big risk in the market. With that said, we continue to make higher lows despite the lagging action. We scummed down on $170 six weeks ago. We now have a tail down this past week on the bear flag break. Each time the bears have tried to break the small caps bulls have supported. This area of the market is an avoid for me but it will be telling if bulls can push up off this $170 area.
MSFT-Monster F U on VOLUME as we bust through $292. Buy dips as long as above $292. This is the leader of the market and is leading the indexes higher.
AAPL-Earnings this coming Thursday should have an effect on the market. I would note that as MSFT NVDA GOOG etc have consolidated at resistance the last 4-5 weeks as AAPL has fought higher. Whether we trade up/down on its report I expect this to push out of this channel and make all-time highs bigger picture. The strongest of the large cap names through this bear market.
NVDA-Five weeks of consolidation with AMD reporting on Tuesday and NVDA later in the month. Looks good to push out and make a run to $300.
GOOG-Lagging name with lackluster response to earnings but seting up to take out $110.
META-Resting nicely since reporting Wednesday evening. Worth watching for follow through similar to MSFT. If go study the weekly META has really respected the 200 Week SMA. We re-took that with this gap up.
NFLX-It looked setup short but put in a higher low, closed above the 20EMA Friday, and looks set up for follow through going into next week. Strong close Friday.
TSLA Weekly-Looked set to break down and still looks vulnerable. However, weekly hammer candle and a scum of support. Would like to get more information before getting involved but if we recaptured the 200 Week SMA (orange) and setup somewhere along the lines of the below scenario I drew this could possibly be a double bottom base setting inside this large descending channel. Observing here with an open mind either direction.
CMG Weekly-MONSTER volume this past week as we bust out to all-time highs. Volume=Price, Cause=Effect. Looks good for higher prices. Buy dips into the moving averages to me.
ANET Weekly-Reporting to start the week. Given the conference calls from MSFT META should be a benefactor of their expected increase to capex spending. A leading name the past few months that looks setup for higher prices.
AMD Weekly-Pullback into the 20 Week EMA as we build a bottoming pattern under $100/$105 area. A positive response to earnings to start this week and AMD may be setup for more of a trending move higher.
MU Weekly-With earnings out of the way if this takes out $65 (I expect it to) it looks good to start an advance higher.
LRCX Weekly-Monster base building over the 200 Week SMA. With earnings out of the way a move through this $535/$540 area should lead to higher prices.
DKNG Weekly-Earnings this week as we are on the verge of busting out of this bottoming base. The entire casino/gaming sector looks very good. LVS BYD etc.
ONON-One of the few growth stocks that continues to look good. Since gapping higher has supported at the 20EMA twice. Inside bar Friday after the shakeout Thursday. The Thursday lows was the AVWAP from earnings. Looking for re-confirmation higher.
ISRG-Consolidating its earnings gap up as it sets up for a push higher. Held the 10EMA and broke out of the daily bull flag. Looking for follow through.
LTH Weekly-A small cap name that looked good going into earnings, exploded on earnings and should be a focus on pullbacks/consolidation for growth investors. A signature trait in many winning growth names.
ABNB Weekly-The $130 area is still the major level that needs to be flipped. More recently a shakeout down and hold of the 200SMA, trade back to the 50SMA, and now a higher low up into the 50SMA. Looking for earnings in a week and a half to resolve this pattern higher through $130 area.
XHB Weekly-This entire sector is smoking hot. Review all the names and look for the ones pushing the highs as the sector ETF sets up on the bottom. TPH MTH TMHC DHI etc. Lots of very good-looking stocks in this sector.
SWAV Weekly-Held the magic line on the lows. Short term stretched but looking for an opportunity to enter after earnings in a week and a half. Good looking stock with great growth.
CELH Weekly-After almost a year of consolidation starting to turn higher through this weekly. Back on my watchlist.
