Earnings Season Begins
Market Update October 19, 2023
The Markets
Earnings season is here. Banks are down, NFLX is soaring, and TSLA is in the ditch. Some big stories there, but they were perhaps overshadowed by comments from Powell, interest rate moves, and the still-rising geopolitical tensions.
We’ll get straight to the charts today.
The Charts
SPY gets rejected at the gap. The last best attempt to break above was Tuesday when it nearly got there. The declining 50-day MA is also acting as resistance. Now the 8 and 21-day MAs are lost along with the short-term momentum as the index closes on the VWAP anchored to the March low.
The 200-day MA, some potential pivot support, and then the big spring breakout area (coinciding with SPX 4200) are just below. A bit of caution makes sense here now. Much more caution if those significant levels are lost.
QQQ While the previous chart has been held lower by a gap in prices, QQQ had been supported by its gap. That support failed today and it closed similarly on a VWAP anchored to a spring-time low.
IWM can’t get any traction and is nearing its March low as performance YTD slips back into negative territory.
DIA is also stuck below the 200-day MA and unable to hold onto recent gains.
TLT made new lows to round out the unanimous day of selling.
DXY was the odd one out as it is still thinking about a lower high. That may be wishful thinking however as this index is still at or above the 8 and 21-day MAs, keeping its upward momentum in place despite the selling on the day.
The Closing Bell
Broad-based selling today for most stocks. NFLX was the major winner, up $55. Some software and energy-related names also were positive for the day.
There is a feeling of caution coming in today stocks lose some support levels. As much of the recent bounce is given back it makes sense to be alert and ready to reduce some risk and exposure.
We’ll see how Friday goes. And check on the Weekly Charts on Saturday morning.
See you there.
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 the 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
October 19, 2023, 4:00 PM
Long: SPY1020P428, TSLA1020P210
Short: ALL
Options symbols are denoted as follows:
Ticker, Date, Call/Put, Strike Price
Example: VXX1218C30 = VXX 12/18 Call with a $30 strike