Arete Tuesday Newsletter

Earnings season volatility is everywhere 📈💰📉

Apr 28, 2021

Earnings season volatility is everywhere. $MSFT down $10 then bounces back $5 on the earnings call. $ENPH down 20 points then back up $10 after the conference call. $GOOGL up $140 on earnings where they beat the highest guidance by $5 Billion dollars in a quarter. $GOOGL made $55 billion dollars in one quarter. Let that sink in. $AMD up $4 dollars on the stellar earnings report. These are only a few. The bottom line is across the boards the revenue and earnings numbers are beating expectations but the market did move a little bit so we may work some of this off. That does not mean we are going through a correction. It means we are going to get buying opportunities. Expect stocks that you buy to test those levels. Expect the market to have gaps higher and lower over the next two weeks. These earnings are going to make a lot of larger investors reposition their portfolios. As we saw today with $CROX people are chasing growth because it is not as prevalent as it was pre-pandemic. This will lead to increased volatility. So consider taking profits sooner than you normally would or understand the increased risk.

The $QQQ closed above $338.77 support at the $340.48 level. We look solid might see some other sectors start kicking in to help the lift. Look at the $CLOU stocks and the $IBB is becoming more interesting as well. The $SOXX hit resistance and bounced off. I am not overly surprised by this. We had core earnings this week. $TXN $AMD and several more. $SPY not much to say another new high and keeps grinding. $IWM is setting up and we might be looking at a $TNA trade. Key levels are market.

I continue to be bullish and recommend focusing on larger-cap stocks. There will be special occasions such as $MUDS which we added to the newsletter today. However, the larger players are looking for liquidity. Go where the sharks are and eat.

Let’s Look at our Indexes!

Let’s Look at our Stocks!

Subscribe to YouTube! 👈Subscribe and turn on notifications. Below is a video of Tuesday’s Stock Market and game plan. Especially good info for stocks that came out with earnings today. $MSFT $ENPH $MUDS $NVAX Consider making these videos part of your routine. I go over the lessons from the trading of the pro series during them and point them out in real-time situations.

As always all investment decisions need to be made by the individual. We all have different risk profiles.No two people trade the same. Understand the buy points, stop losses, trims are suggestions. For example on stops. I want to see it close there at the end of the day.

You need to develop your own process. I am willing to help and offer feedback.

Please make sure you Subscribe to Twitter! 👈and turn on notifications. There are times my updates are timely in regard to the Newsletter as well as other ideas. I called buy levels on $MUDS and $SKLZ that did quite well.

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The Chasing Alpha Newsletter

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