Next Day Prep: Fizzling Out Sell the News, Seek Bank Strength
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Welcome to Next Day Prep – What We Are Watching Tomorrow. Today, the market tried to reach new all-time highs but lacked the momentum, ending the day in a flat note.
Overnight Headlines
- Netflix (NFLX): Despite beating expectations and raising guidance, the stock sold off due to revenue driven by forex rates.
- Charles Schwab (SCHW), Comerica (CMA), Regions Financial (RF): Regional financials outperformed, with several hitting new highs.
Economic Announcements
The Housing Starts data showed strength on the surface, but weakness in single-family units signals ongoing affordability challenges in the housing market.
Earnings Highlights
Be cautious with earnings plays as the “sell the news” reaction was evident. Look for actionable plays beyond headline reactions.
Top Movers
- STEM: Showing persistence with support around $12.80, potential target $13.80-$14.20.
- CW: Consolidating near $487 resistance, potential move to $490-$495 on a breakout.
- TEAM: Coiled up near $195 resistance, target $198-$200 on a breach, entry around $193.
Quick Trade Ideas
- SHOP (Shopify): Potential entry around $126, targeting $128-$130 on a pullback with robust volume.
- UUUU (Energy Fuels): Reclaiming key levels with potential push towards $9.80 after holding above $9.
- CAT (Caterpillar), AMD: Caterpillar displaying strength around $405, potential swing towards $415. AMD recovering with entry near $156.50 targeting $159-$161.
Key Takeaway
While the market remains indecisive, focus on individual stocks showing strength and clear technical paths like STEM, Shopify, and AMD for current opportunities.