Situation Awareness: Cautious. Markets respond to mixed earnings from mega-cap tech, while strong economic data complicates the rate cut outlook. Trade mode: neutral and watchful. Today’s session grapples with digesting Alphabet and Amazon’s positive earnings surprises against Meta and Microsoft’s disappointments, coupled with robust GDP and jobs data. Regime context — 65.33% of stocks trade above their 40-day SMA, and the 4% Bull/Bear gauge shows 0 bulls vs. 0 bears. The 5-day trend shows inconsistent direction, lacking clear momentum.
SIP: VIAV ORLY KGC TXT
- What’s working: Few strategies are overwhelmingly strong today, indicating selectivity is key.
- Leading sectors: Energy’s relative strength due to oil price volatility makes RSPG one to watch; Financials show consistent positive ATR change, followed by Technology and Industrials.
- Key event: Q1 GDP advanced estimate beats expectations at 2.0%, alongside better-than-expected jobless claims.
- Market read: Yesterday’s mixed market finish amid rising oil prices and mega-cap earnings caution sets the stage for a volatile session, requiring careful navigation.
- DEP watchlist: BTE, CNC, MSTZ.
- SIPS: ACDC, MXL.