Next Day Prep: Tech Titans Signal New Record Rally
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Record highs for the S&P 500 and the Nasdaq Composite marked an explosive day in the markets, driven by targeted buying in the tech sector, particularly in semiconductor stocks like AMD and DELL. NVIDIA’s bullish comments on A.I. ignited the sector, setting the stage for potential continuation plays.
Overnight Headlines
- DELL surged 9% after upgrading revenue forecast.
- ARM closed strong, presenting a power-hour rip opportunity.
- FICO faced a significant drop due to a competitive challenge.
Economic Announcements
The release of September FOMC minutes had no impact on the market sentiment, as it confirmed expectations of potential policy easing before year-end.
Earnings Highlights
- AMD and DELL led the way with strong performances.
- IE (Ivanhoe Electric) saw a massive volume spike, signaling a breakout in the materials sector.
Top Movers
- CIEN and PWR in networking/optical and industrial sectors respectively showcased late-day strength for potential continuation.
Quick Trade Ideas
DELL: Watch for a shallow pullback towards $163.60-$164 for a potential push towards $165.50 and beyond.
ARM: Look for dip-buy interest around $166-$167, targeting $170 and possibly $172 on a breakout.
PWR: An upward trend suggests a buy-in around $441.80-$442.40, aiming for $446 and $448.50 with increased volume.
Key Takeaway
Focus on continuation setups in leading sectors like tech, networking/opticals, and industrials. Look for strong closes and rising volumes as potential indicators for short-term momentum plays in names such as ARM, DELL, CIEN, and PWR.