Next Day Prep: Profit-Taking Wave Sparks Red Flags
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Welcome to Next Day Prep, your guide for tomorrow’s market action. Today’s trading session started strong with record highs on the S&P and Nasdaq but ended with a sharp pullback due to profit-taking.
Overnight Headlines
- Verizon (VZ) surged 4% on strong earnings and revenue growth.
- Cleveland-Cliffs (CLF) soared over 12% on improved profitability outlook.
Economic Announcements
Key earnings reports to watch tomorrow include General Motors, Lockheed Martin, Raytheon, and Texas Instruments, offering insights across various sectors.
Earnings Highlights
Upcoming reports this week from Google, T-Mobile, and Tesla will set the tone for market sentiment.
Top Movers
- Continuation Breakouts: WAVE showing momentum with an entry opportunity at $8.40 targeting $8.80.
- Anticipation Setups: Palantir (PLTR) and Synopsys (SNPS) signaling potential breakouts in different ways.
- Disaster Alert: Sarepta Therapeutics (SRPT) suffered a major setback with FDA actions leading to analyst downgrades.
Quick Trade Ideas
- For momentum: Watch WAVE for a breakout above $8.40.
- For anticipation: Consider entries in Palantir near $150 and Synopsys on a dip.
Key Takeaway
Market sentiment is split with strong performances from mega-caps and standout earnings winners like Verizon and Cleveland-Cliffs. However, underlying weakness in market breadth signals caution. Stay alert for reactions to major earnings to gauge market stability.