Next Day Prep: Tech Defends, Carvana Soars What’s Next?
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Market Mood: The market feels cautious ahead of the upcoming Federal Reserve decision. Tech stocks are facing challenges, but specific sectors are showing resilience.
Overnight Headlines
- Carvana (CVNA): Surged over 12% on news of joining the S&P 500. Traders cautious due to fading price action post-surge.
- Warner Bros. Discovery (WBD): Amid a bidding war, stock volatility presents arbitrage opportunities but high risk for retail traders.
Economic Announcements
Focus on the Federal Reserve decision upcoming on Wednesday, with expectations of a 25 basis point cut. Beware of a ‘hawkish cut’ scenario that may impact tech stocks.
Earnings Highlights
- Oracle: Anticipation for earnings release, with traders position for a beat.
- Broadcom: Rumors of potential business shift by Microsoft leading to stock volatility. Positioned as a sector leader.
Top Movers
- AMD (Advanced Micro Devices): Showing relative strength, potential for a push towards $225 if it clears $221.50.
- Eaton (ETN): Trending beautifully, with support at $343 and potential breakout above $344.
- CommScope (COMM): Mid-cap with a continuation setup, watch for a possible move higher.
Quick Trade Ideas
Stay nimble and monitor key levels. Consider trading opportunities in AMD or Broadcom on volume confirmation. Cash position advisable until the Fed decision on Wednesday.
Key Takeaway
Market sentiment remains cautious with focus on tech stocks and upcoming Fed decision. Traders advised to watch key levels, stay alert for potential opportunities, and manage risk prudently.