Anything can happen
Midweek Market Update April 19, 2023
The Markets
We’re full speed ahead into earning season now with some heavyweights already reporting (JPM, NFLX) and others quickly approaching (IBM, TSLA this evening).
The indecisive market nature can be (unsurprisingly) observed in some individual names as well. Going into the report last night Netflix stock was:
In the middle of the previous day’s range
Between the 8/21-day moving averages
In the middle of the flat Bollinger Bands
RSI of roughly 50
That’s chartspeak for “as undecided as it gets.”
It did have an explosive selloff initially but quickly moved back to flat in after-hours trading before drifting lower today.
On the bigger picture view, SP Futures ticked $4198.25 yesterday before giving up some of the gains. Prices are getting closer to indicating that there is more upside to come.
ES - SP 500 E-mini Futures
Now for the rest of the charts.
The Charts
SPY continues to surf the 8-day MA higher. It needs to be above $420 for more upside.
QQQ is putting a little more pressure on the rising 8-day MA, but so far is able to stay above. The all-time high anchored VWAP was support today. This one needs to clear $321 for more upside.
IWM keeps compressing between the now rising 8/21-day MAs and the $179-$180 resistance zone, which also contains the swing high AVWAP. Over $182 could give way to a move higher.
DIA is rounding over a bit and has an inside day today. $346 is the next test higher
ACWX has moved back into the YTD high at $50. A move to get and stay above that price is what the bulls are looking for.
The Closing Bell
A catalyst.
That’s what everyone is watching and waiting for.
Some massive earnings surprises
A surprise rate cut
A geopolitical event
A favorable inflation data surprise
It could be anything. Or, it could be nothing.
Sometimes ‘nothing’ happens and the market just keeps grinding along.
After all, a banking crisis is a pretty substantial catalyst, and even that didn’t change things much.
So as we move through earnings season and closer to the traditionally slower time of year it is important as ever to keep an open mind.
Anything can happen. And ‘nothing’ can happen.
Let price lead the way. It will tell us what to do.
The Disclosures
***This is NOT financial advice. NOT a recommendation to buy, sell, or trade any security. The content presented here is intended for educational purposes only.
Andrew Moss is an associated member of T3 Trading Group, LLC (“T3TG”) a SEC registered broker/dealer and member of FINRA/SIPC. All trades placed by Mr. Moss are done through T3TG.
Statements in this article represent the opinions of that person only and do not necessarily reflect the opinions of T3TG or any other person associated with T3TG.
It is possible that Mr. Moss may hold an investment position (or may be contemplating holding an investment position) that is inconsistent with the information provided or the opinion being expressed. This may reflect the financial or other circumstances of the individual or it may reflect some other consideration. Readers of this article should take this into account when evaluating the information provided or the opinions being expressed.
All investments are subject to risk of loss, which you should consider in making any investment decisions. Readers of this article should consult with their financial advisors, attorneys, accountants or other qualified investors prior to making any investment decision.
POSITION DISCLOSURE
April 19, 2023 4:00 PM
Long: ENVX, GOOGL0428C110, NVDA0421P275, QQQ0505P310
Short:
Options symbols are denoted as follows:
Ticker, Date, Call/Put, Strike Price
Example: VXX1218C30 = VXX 12/18 Call with a $30 strike