Trading Places Live! December 7, 2022
Tom Bowley: Good morning and welcome to this Wednesday, December the seventh. Tom Bowley: 2,022 addition of trading places live at earnings. Beats com Tom Bowley: I'm. Tom Boley, chief market strategist here at earnings beats, and i'll be your host for the next 30 min. Tom Bowley: featuring everything you need to know, as you prepare for the trading day ahead.
Tom Bowley: Well, we have seen our Major moving averages move back beneath Tom Bowley: the 20 day moving average. so that was step one for the bears to take out the initial support. Tom Bowley: do you think we have a couple of other key support levels? We'll need to watch here before things completely revert back to the bears, but we do have futures down again this morning. Tom Bowley: the doubt future is currently down 58 S. And P. 500 features down 15 Tom Bowley: Nasdaq features down 77 Tom Bowley: So on a percentage basis we are seeing the Nasdaq hit a little bit harder.
Tom Bowley: currently Crude oil prices up about 50 cents a barrel Tom Bowley: that takes us up back near $75 a barrel, but crude oil continuing to hover Tom Bowley: near its lows of 2,022 Us. 10 year treasury yield down 4 basis points currently at 3.4 7 7 Tom Bowley: so down very close to that 3 point, 4 8% area Tom Bowley: find it interesting. A lot of folks still pouring into treasuries. Tom Bowley: That is normally not what you would do if you're worried about inflation. There's no reason in the world
Tom Bowley: to be jumping into a 10 year treasury. Yield at 3.4, 8. If you believe inflation is going to be a long term issue. So I think at this point the bond markets telling us the economy is definitely the bigger issue Tom Bowley: not inflation. Tom Bowley: and that should help Tom Bowley: the fed Tom Bowley: kind of move from it's more hawkish dance to a more dovish one over time. I think we've seen a little bit of those hints Tom Bowley: already being laid. So I do think we're going to see the Fed.
Tom Bowley: I've said it all along. I believe we're going to see the fed cutting rates Tom Bowley: later in 2,023, not raising them. But Tom Bowley: but we'll see. We've got a big Tom Bowley: meeting coming up Fed meeting in another week or so. It starts next Tuesday ends on Wednesday we'll get the latest policy statement.
Tom Bowley: and the decision right now all signs are still pointing to another rate hike, probably 50 basis points. Tom Bowley: but I think the market will be much much more concerned with where we go. Tom Bowley: After that. So what is the fed. Say, what is Chief PAL, talk about? Is he. Tom Bowley: you know, indicating that they're willing to Tom Bowley: to cut rates? Are they going to slowly? Tom Bowley: cut the the hikes. So, in other words, instead of doing 75 basis points, or 50, maybe go back to doing 25 Tom Bowley: short term until they get more evidence. Tom Bowley: I would expect that that's going to kind of be their language. That's been a consistent theme with the fed
Tom Bowley: is that they want a series. They want continuing information coming out that suggests inflation is slowing in it. That's no longer a problem. Tom Bowley: So I think they're going to be hawkish. But I think they're going to begin Tom Bowley: to maybe just moderate that hawkishness just a bit. And I think we turn dovish at the fed, and I think that is going to give the stock market a green light.
Tom Bowley: I know a lot of folks are worried. What about the recession? Tom Bowley: Well, I mean technically, we had 2 quarters of negative Gdp. Tom Bowley: When I think of recession. If if our Gdp is coming down.
Tom Bowley: that's contraction, that to me means recession. Now the Government, you know, is decided that, hey? We'll tell you when it's a recession. Tom Bowley: Pay no attention to the man behind the curtain. Tom Bowley: that's essentially what they're saying when they, when you look at Gdp and all these things we'll let you know. Tom Bowley: Well, by the time they let us know the stock market will have long ha have have already, You know the stock market would have bottomed, and we will be heading back up.
Tom Bowley: and then the fed, or the government's going to say. Yep, it was a recession, or we're in a recession that points can be way too late Tom Bowley: to worry about selling. Tom Bowley: So I Tom Bowley: continue just to monitor the charts. and I think the market goes higher. Whether or not we do it Tom Bowley: this month or next month, I don't know, but I do know that when rates come down. Tom Bowley: valuations go up Tom Bowley: and so we'll see what happens.
Tom Bowley: there. Tom Bowley: Okay, Tom Bowley: real quick. Let me go over to Tom Bowley: our website over at earnings. beats.com for those of you that are new to the show. Welcome! We certainly appreciate you tuning in
Tom Bowley: if you like the show. We are here at earnings beats on Mondays and Wednesdays from 9 am. To 9, 30, Tom Bowley: or thereabouts. Sometimes i'll run a little bit over and then over at Stockchart. You can also listen in on Tuesday and Thursday at 9 am. Just click on the stock charts TV. I'll show you later in the show how you can do that. Tom Bowley: love to have you join our earnings. Beats digest Newsletter. If you have not already, it's a 3 times a week. Newsletter usually published around 8 30, a very, very simple. Read 2 paragraphs in a chart. Normally. So if you're interested in technical analysis or seasonality. Tom Bowley: or any of those things. I think you're gonna find the Newsletter to be very helpful. It's completely free. No credit card required. You can unsubscribe at any time, but please check that out. Those of you that are on the earnings beats digest. Newsletter will be getting an invitation to our market vision 2,023 event.
Tom Bowley: which it will be held on Saturday, January seventh 2,023. That's coming up one month from today, one month from today hard to believe. We've got another market vision event coming up. But mark your calendars, and, more importantly, make sure you're on the eb digest. So you don't miss an invitation to that free event. It should be a lot of fun. Tom Bowley: and Tom Bowley: you know, we got kind of like a fork in the road here. Got a lot of folks thinking we're going to roll back over and go lot lower. Tom Bowley: Got other folks like me who believe we're probably going to go higher, and I reserve the right to change my mind between now and January seventh, depending on the price action, and what's happening, and what the Fed says, and there's a whole lot of different things that we have to take into account. Tom Bowley: but anyway. Tom Bowley: make sure you are signed up for that eb. Digest.
Tom Bowley: All right. Let's move on to the action. From Tuesday, Dow Jones industrial average, down 350 points. We did lose that rising 20 day moving average, and we did so with a slight negative divergence. Ppo has been rolling over Tom Bowley: while prices have been trying to move higher. We also got right up to a key resistance level. We went just a little bit above, I think. We closed 2 days Tom Bowley: above the August high, and then turned around and came right back down. So in my opinion, it's just another key resistance point that we'll need to watch going forward. But in the meantime, lu dropping back below that 20 day moving average with a slight negative divergence. Tom Bowley: definitely adds a little bit more flavor to this move for the bears, because typically, when that happens, we tend to see 50 day moving average tests. Tom Bowley: So i'm not going to sugar coat this. That was not a good move yesterday in the short term. Don't like to see the dial breaking down. What we want to see is a quick reversal and get back up above the 20, not just on the dial, but across all of the major indices. Tom Bowley: and with futures pointing down at the open. Obviously it's not going to be an easy thing going to have a lot of technical traders who are going to be looking to sell today after the breakdown yesterday.
Tom Bowley: So it's going to take some buyers, and probably going to take help from the market makers to get price action back above the 20 day s and p 500 down 57 also breaking below it's 20 day, and after barely closing below 4,000 on Monday. Tom Bowley: we now see a much, much bigger decline. Take us way below that 4,000 level down to 39, 41 so S. And P. 500 from a technical perspective also not in a great position today below the 20 day Tom Bowley: the Nasdaq down full 2 percentage point yesterday 225 points back down near 11,000. That's been a area where we have had recent support Tom Bowley: over the last 3 4 weeks. If you look back here in the latter part of November, many tests, right at 11,000 are slightly below. Here we are again 50 day moving average at 1913. We're only 100 points away, 1% Tom Bowley: on the Nasdaq away from what I would say is at least a short term price breakdown. We do still have the Gap support from November tenth. That was the day the October Cpi came out, and we had the huge gap up. That gap has not been tested yet. Tom Bowley: The top of that gap.
Tom Bowley: so that, I believe was 1850 if i'm not mistaken, maybe we'll try to look at that just a little bit. Tom Bowley: The mid caps fell 1.1 Tom Bowley: that was 27 points also well below the 20 day moving average now not far above the 50, and we've got that gap support from October tenth. Excuse me November tenth that we need to watch Tom Bowley: small caps.
Tom Bowley: you know. You see, this was across the board small caps down about one on Tuesday following 11 points just below the 1,200 level again. That's where we saw some recent support. That's also where we saw prior resistance right near that 1,200 level, so kind of like the S. And P. And 4,000. Tom Bowley: It's been similar recently on the S. And P. 600 small cap index, with that 1,200 level being a key pivot area on the chart Tom Bowley: sectors. The only sector up yesterday was utilities. Tom Bowley: 10 of the 11 sectors were down, utilities were able to go against the grain, rising about 6 tenths of 1%. Tom Bowley: But weakness was among some of the more aggressive areas. Communication services down 2.8, 9%, 2.8, 8 technology down 2 point, 1, 4 discretionary down, more than one and a half percent throw in energy with falling crude oil prices.
Tom Bowley: And that was down 2.6 now down to that 85 area where we had seen this, these recent breakouts I'm going to call it 84, 85. That was a prior resistance that now becomes support. And remember when we were up near 95, Tom Bowley: and I talked about that Ppo rolling over, showing a negative divergence as we went up to new highs and how the 50 day Tom Bowley: can be a magnet after a negative divergence. Print same thing. By the way, if you're trending down and you get a positive divergence Tom Bowley: where price action keeps going lower, but the Ppo. Starts to turn up. Then you could be looking for 50 period test in the other direction. Xlc. Was perfect example. Lower prices higher. Ppo went back up 50 period test. Tom Bowley: So Tom Bowley: you gotta look at this from both sides. All it is is just one more indicator. Tom Bowley: and it's a secondary indicator. When I look at divergences. It's not my primary.
Tom Bowley: I'm still looking at price action. But when you start Tom Bowley: to lose some key areas of support, like the rising 20 day that starts to make those negative divergences a little bit more important. Which is why, again, I would go back to the down and just say, hey? Negative divergence rolling over, closing below the 20 day short term. That could be trouble. Tom Bowley: If we can't get back up through that 20 day moving average, I think the 50 day becomes the magnet to the downside Tom Bowley: but having these 3 aggressive groups under performing Tom Bowley: again yesterday, of course, on a move to the downside. We expect that. Tom Bowley: but we're in a downtrend. We're trying to get these 3 groups to write themselves, so I don't like it any day that they're under performing Tom Bowley: They were starting to show some strength. You could see. Discretionary has rolled back over. We have some support right around this 100 3,939 level.
Tom Bowley: And if we can't hold that. Tom Bowley: I mean really the recent lows come into play, and if the discretionary stocks go back to the recent lows. The Tom Bowley: I can't really see a scenario where the stock market does. Well. Tom Bowley: so that's going to be a key area to watch. Does discretionary break back down again, and as far as the excel y goes Tom Bowley: right now. Amazon and Tesla are both under a lot of pressure, and those are the 2 largest holdings in the Xy. Tom Bowley: So this Isn't rocket science. If the excel, why is the turnaround? We've got to see some good action from Amazon and Tesla. Now for those of you who like to look at patterns, let me just point out right now that Tesla.
Tom Bowley: obviously in a downtrend, failing at the 20 day, not looking very good. However. Tom Bowley: we do have this low coming down all the way to these lows. You can see the Ppo is never gone back to a new low, so we do have a positive divergence which suggests a potential 50 day test to the upside. But we've got to get through and sustain a move through the 20 day. Tom Bowley: That's point number one number 2. Tom Bowley: I see a potential Tom Bowley: bottoming head and shoulder pattern. Tom Bowley: but it doesn't execute until you get the breakout. Tom Bowley: So here is the move to the downside. There's your left shoulder. There's your left side of the neckline around 200. There's the lower low to form the head
Tom Bowley: back up to 200 Tom Bowley: for the right side of the neck line, and then right back down to where we were on the left shoulder. This is a fairly symmetrical Tom Bowley: head and shoulder, bottoming head and shoulder pattern, but Tom Bowley: it doesn't mean anything until we actually get the breakout Tom Bowley: to the downside. If we lose the low from back in November. Tom Bowley: then this is all Tom Bowley: for not Tom Bowley: the pattern is disintegrated. It's gone no more worrying about whether or not we have a head and shoulder pattern at the bottom.
Tom Bowley: So that will. That'll be worth watching, because again this ties into the Xy. Tom Bowley: It's a big components over 20 of the Xy. If Tesla fails, chances are that excel Y is not going higher. Tom Bowley: So that's why I think this is an important chart to be watching. Tom Bowley: because then that feeds into the excel, and if the excel Y is not performing well again, it's hard to imagine the S. And P. 500 going higher. So I think Tesla is one of the key stocks to be watching here. Tom Bowley: Whether or not we can hold this right shoulder. Hold the make sure we don't go back down below the head, and eventually break out above 200. Will we do it. Tom Bowley: Don't know we're gonna find out Tom Bowley: 10 year treasury yield today.
Tom Bowley: let me give you the latest. Tom Bowley: So we are now down to 3.4, 6, 3.4, 5, 9 Tom Bowley: breaking down below this support area. Tom Bowley: I'll tell you what. When we were going up in the 10 Year treasury yield the Nasdaq really struggled. Now we're coming down, and right now we're not really seeing a lot of strength in the Nasdaq. Tom Bowley: So when I see that kind of bifurcation where the bond market is telling me one thing. This to me is bullish.
Tom Bowley: because if we're coming back down, it's telling us that our battle with inflation is nearing an end. Tom Bowley: That's good. That's really good for the stock market. Tom Bowley: but at the same time the bond market is sending me that signal the stock market. I'm seeing a lot of my sustainability ratios roll back over. We're seeing some key support levels fail, the rising 20 day moving average being the one of the key examples, and so the stock market Tom Bowley: is starting to show more bearish signs, while the 10 Year treasury yield, and the treasury yields in general Tom Bowley: are painting a much more bullish picture for the stock market. Tom Bowley: Now, when I see that kind of bifurcation, those 2 different Tom Bowley: animals, I tend to believe the bond market. I've always said bond market to me is smarter than the stock market. I think stock market gets manipulated a lot more personally. That's just my opinion.
Tom Bowley: and so I really like to pay attention to the signals that the bond market is sending me. Tom Bowley: But I don't want to ignore the technical signs that we're seeing on the major indices. So the S. And P. 500 Failing to hold the 20 day, I said yesterday Tom Bowley: to our members at earnings beats. I pick my spots when I want to use leverage Dtfs. Tom Bowley: I don't like to buy and just hold leverage dtfs, because, as you go through Tom Bowley: the constant up and down Tom Bowley: prices. Erode on these leverage, Dtfs
Tom Bowley: and I can give you an example. Tom Bowley: First let's. Let's go over and look at the Tom Bowley: Let's look at the Tom Bowley: Nasdaq 100. Tom Bowley: So do you see? Course, yesterday we broke below the 20 day moving average, but the day before we were just a little bit above it. I'm going to shorten this chart just so you can see what i'm talking about here. Tom Bowley: so it's just a 3 month daily chart. Tom Bowley: But do you see Tom Bowley: how on Monday we were? We closed well above the 20 day moving average.
Tom Bowley: If you look at something like the Tqq. This is an Etf that tracks the Nasdaq 100 at a 3 to one clip. Tom Bowley: Now, if you watch, if you look at this, I want to point out a couple of things. Tom Bowley: Notice Tom Bowley: on Monday. The Tqqq is down at its twenty-day moving average Tom Bowley: again. If we look at the ndx
Tom Bowley: we were well above the twenty-day moving average Tom Bowley: again. It's the erosion. Do you see the Nasdaq closing above it had a higher candle body Tom Bowley: on Tom Bowley: December the first then it did back on November the fifteenth. Tom Bowley: See that right there Tom Bowley: versus this right here.
Tom Bowley: we broke out. Tom Bowley: Let's go back to that Tqq. Tom Bowley: We actually closed right on the same level. Tom Bowley: So again over time, the up and down, the up and down, the up and down erodes Tom Bowley: the Tom Bowley: performance of the Tqq. That No, that doesn't mean Tom Bowley: that when the Nasdaq ends up going up over a long period, the Tq. Won't go up as much as the Nasdaq. Of course it will. But you might not get that triple that you're looking for. Tom Bowley: and that's where I think you know you've got to be careful Tom Bowley: because you're taking a lot more risk, and you're not getting the return that you thought you were going to be getting. Now, these these leverage dtfs when the market goes up
Tom Bowley: like I you could probably go back and do a calculation. I'm not going to do it today. But here, from this close Tom Bowley: of Tom Bowley: 1924 days later. On October 20 fifth we were at 2255. Tom Bowley: I'm. Guessing that these 3 days Tom Bowley: the Tqq. Q. Went up more than 3 times the Nasdaq 100,
Tom Bowley: because there's a compounding effect. Tom Bowley: The best time to be in these leveraged Etfs is when you can catch a bottom and ride a trend for a period of time. Tom Bowley: So again i'm not going to do the calculation here and waste everybody's time. But if we go back and we look at the Ndx over that same period.
Tom Bowley: which was right here. Tom Bowley: And if we went from that close, 11,046, 71 to this close 11,669. Calculate that percentage and do it on, you know, if you wanted to just test it out. But go back and calculate Tom Bowley: what the ndx did over those 3 days, and then calculate what the t queue queue was over those same 3 days, and see if it wasn't more. Tom Bowley: then 3 to one. I believe it probably will be.
Tom Bowley: Anyhow. Tom Bowley: we that's the point. I'm trying to make what we want to catch these leverage Dtfs, when we believe that we could be bottoming and then starting another up trend. Tom Bowley: Well, if you know much about stock market, you know that typically when we make breakouts and we come back, and we test the 20 day. That's where we normally bounce here.
Tom Bowley: This was a Tom Bowley: but just a little bit below the 20 day, and then a quick bounce back up here. We went a little bit below the 20 day, but Tom Bowley: we haven't lost key support. Tom Bowley: and so Tom Bowley: the first thing I would say, here is there is a key closing level or opening. We have not closed or opened below 11,549 69 Tom Bowley: over the last Tom Bowley: month, or maybe just a little less than a month, 3 and a half 4 weeks. Tom Bowley: Then comes the major Gap support level from November the tenth. Tom Bowley: That's when the October Cpi came out was much tamer than expected. You remember that pre-market
Tom Bowley: I mean the market was just going up as as fast as I've seen it in free market. Tom Bowley: and so we went from 18, Tom Bowley: to 1,450. Tom Bowley: We're up, probably 4 at the open the next day on the Nasdaq and look at the volume that came in. So right there we open there. We went down a little bit, and then broke back up through that level, and that leaves that support level
Tom Bowley: as a major support level on this chart. Tom Bowley: I am not going to be Tom Bowley: nearly as bullish in the short term. Tom Bowley: if that is that goes back and loses that gap support. Tom Bowley: So that is going to be one to watch very, very closely. Tom Bowley: If I pull up that that is 11,350 Tom Bowley: on the Nasdaq, 100, Tom Bowley: 11,350 Keep that number in mind, because we're only 200 points away. Tom Bowley: We were down 237 yesterday.
Tom Bowley: We were down a couple of 100 the day before Tom Bowley: we go down another 200, and we will be at. Tom Bowley: if not Tom Bowley: below Tom Bowley: this. Tom Bowley: 11,350 level. Tom Bowley: All right. let's move on.
Tom Bowley: So I wanted. I've been doing this top stocks Tom Bowley: our Eb top stock segment last couple of days. I'm going to keep doing that, just pointing out some of the stocks that have really been performing. Well, yesterday Vivant Smart Home had a huge day up 32% N Nrg: energy agreed to buy Tom Bowley: even for 2.8 billion, and the fact that it opened, closed and traded in a very small range. I didn't see the details, but this looks to me like a cash offer. Tom Bowley: Normally, if it's a stock offer Tom Bowley: where the V and T. Tom Bowley: Vv. And T. Shareholders are getting shares of Nrg energy. Tom Bowley: then normally it will fluctuate, based on whatever Nrg energy is doing Tom Bowley: in this case. It didn't really do much of anything which tells me that it was a cash offer again. I haven't seen it. But that's based on you know, my background in public accounting and just experience. Looking at these charts when you don't see much movement like that on massive volume. It's pretty much a done deal at that price.
Tom Bowley: so let's pass on that one, because it isn't going to be trading off of that price level going forward, or it shouldn't unless the deal falls through. Tom Bowley: Sumo logic. This is one that was breaking out in today, and this would have been a key neckline breakout right here. Tom Bowley: left shoulder over here, right shoulder over here. Intraday. We were making a great big breakout. Excuse me. Okay.
Tom Bowley: but we failed. Tom Bowley: And any time Tom Bowley: we get that failure like that, and we do it on big volume, it makes me really nervous. Tom Bowley: We've been in this the stock that's been down trending sideways, consolidating for a while. We need to get that break out above about 8, 25, or 8, 30. We had it on big volume yesterday. Tom Bowley: and then the carpet was pulled out from under the bulls, and we came back down again. That to me is a more barry signal. I would be barish to stock until we can get that confirmed breakout above 8 and a quarter, and then we've got other levels to deal with, but that's the initial one. We got got to get through 8 and a quarter, so i'm not really interested there. Tom Bowley: Gtlb: this is one that reported earnings. Yesterday I suggested on my show yesterday. It looked like it was going to gap up near the 50 day moving average. Tom Bowley: and I said Tom Bowley: I wouldn't trust this move to the upside. It wouldn't be surprised if it's sold off.
Tom Bowley: Well, it gapped up. Got almost right up to the 50 day, and you can see the big reverse what actually came down more than 10% from its high intraday, and then did rally back up a little bit, but it's got trend line Resistance to deal with. It had huge volume, and it closed below the open, so we had a filled candle. Tom Bowley: I don't know this one. Just doesn't look very good to me until we get that breakout about the 50 day moving average. I'd be careful. Tom Bowley: Those were all those were from the strong earnings chart list from our strong future earnings. Chart list. Here we're a couple led n making a nice break out here above this recent high that looks good to me. I wouldn't be surprised to see a run now for 57 and a half to 58
Tom Bowley: ml CEO Tom Bowley: mel Co. Resorts and entertainment. This thing's been on a role. It's just too over bought. I love what's going on here? Great volume trends AD line. Everything looks great. It's just so over. Bought Tom Bowley: that it's hard to take a position. But this is one that if and when it begins to slow down we could see an easy Tom Bowley: 1520% drop, maybe back to test that 20 day moving average. That's when i'd be more interested in Mlco. Txt. This is textron. Tom Bowley: another one that gapped up above resistance. It did print a filled candle, but it
Tom Bowley: still closed above this congestion here. So now i'd be looking maybe at 71 50 to 72 is key short-term support. Along with that rising 20 day moving average. I think as long as the stock trade trades above the 20 day. I like it Tom Bowley: on our strong accumulation distribution chart list, Ry: I Tom Bowley: was the number one stock it is now trending. Above. It's 20 day moving average short term. I like that. Tom Bowley: Not a lot of volume. it's got some overhead resistance coming up at 34, so I think it's probably a do nothing at this point. Closer it is to its 20 day moving average. It could be a trade with a tight stop Tom Bowley: why ext this is yes. Tom Bowley: a huge move here back on the first of December. I love this candlestick after a long trend like this to the downside it started to strengthen a little bit. The AD line is up near a 52 week high, and I love that that's close to a Mayorbo zoo candle.
Tom Bowley: where you open on the low and close on the high. We didn't quite do that. Tom Bowley: but that's a pretty solid hollow candle on nice volume. Tom Bowley: so the biggest support level to me on stock like this is the opening price on the gap. So for yes, for me the opening price was 564. That's what I would be watching for. There.
Tom Bowley: on our raised guidance chart list. These are stocks that have recently raised guidance within the last few months, and one of the stocks are the leader in this group Tom Bowley: with C. Flt. Tom Bowley: Obviously the raised guidance. Hasn't been doing a whole lot to influence. A lot of buying stock continues, and it's down trend. And even though yesterday was up almost 3.6, it remains in a down trend. I really don't see anything here to like much. Smci.
Tom Bowley: This is a super micro. This. Actually I do like that. Reverse with the 20 day moving average. I wouldn't be surprised to see this one. Tom Bowley: Excuse me, have another run back up for about to about 94 $95 that'll be a 10% move from here. Tom Bowley: If we were to go back and take out that low from yesterday, then I would think maybe this gap supported 75 would probably come into play Tom Bowley: all right. Earnings. Tom Bowley: I'm gonna just show you a couple of companies that had some really big reactions that earnings the big one was Mongodb. This is a software company had been trending down, really not showing any signs of anything good. Well, they were expected to lose 17 cents in their latest quarter. Tom Bowley: They had a profit of 23 cents Tom Bowley: huge huge turnaround. Obviously they weren't sharing that news with Wall Street ahead of time, because the stock was not performing well, but if we look at the pre-market action, we will see stock up 27. Point 8, 3 $40 to 184 up near this prior high.
Tom Bowley: my guess is that again, because we're working at this resistance level, I wouldn't be surprised to see some short term selling on Mdb. After the opening bell we'll see. Tom Bowley: let's see. We'll look at 2 more, and then we'll wrap up These will be the 3. You must see as Well, Hqi Tom Bowley: Hqy reported. Numbers that beat on the bottom line 38 cents versus 35 cents. But you can see the stock is down. 2%. It had been. It was kind of in a bare flag
Tom Bowley: moving down, and then kind of coming back up, or maybe call this a wedge whatever you want to call it, but Tom Bowley: doesn't really look very good to me, and the fact that we're now gapping down with earnings, I wouldn't be surprised to see this begin to roll back over again, and then the last one I will bring up is let's see Tom Bowley: how about it? mobile-y, which was seeing a pretty good reaction to its earnings. Tom Bowley: They were expected to post 13 cents in earnings. They posted 15 cents. Stock has been trending up for the last month and a half since it went public. Tom Bowley: and it is up another 6 and a half today to 32, 50 i'm gonna pull this one up Tom Bowley: and look at the candle, because it looks like it's going to open very close Tom Bowley: to the key level, which was 32 43.
Tom Bowley: I'm trying to see if we get an open here, there it is Today's open is at 32 43, so it is opening right on key resistance. Tom Bowley: My guess is that it will not make the breakout based on the fact. We didn't open above Tom Bowley: It's kind of strange for them to for a stock to open exactly on resistance at 32, 43. But we will see what happens. Kind of watching it Here comes back down now 3,207
Tom Bowley: we'll see whether or not we can get back through a close with big volume over 32, 43 would be bullish. But my guess is Tom Bowley: the probability suggests. Maybe we're going to go down first, maybe at least to gap support, which would get rid of that dollar 58 gain that we've got going on right now Tom Bowley: and then we'll see what happens from gap support, and that'll probably make the Tom Bowley: that'll probably end up making a call for the longer term. All right. Let's move on over to the dashboard. See? What's going on
Tom Bowley: right now. Well, things gotten better than they were in pre-market. I know 1 point the Nasdaq was down 100, the futures down 100. Now we're down 36 dow down 48 S. And P. Down 7. I'm. Also kind of keeping an eye on the Vix. The Vix is moving up, but it really isn't up a lot, considering Tom Bowley: that the market is now back down below key moving averages. We've seen a few days of selling. Tom Bowley: I mean. It seemed like, you know, back throughout the year we'd have the vix up near 30 at this point. Tom Bowley: And now we're sitting at 22. Tom Bowley: So the Vix tells us a little bit about the expected volatility going forward. That's what the vix does.
Tom Bowley: And so, when the vix is not Tom Bowley: moving up Tom Bowley: where we would think it, it, it's telling me the the fear Tom Bowley: and the panic and the volatility ahead. All of that the expectations are all coming down. Tom Bowley: and that's bullish as well. Tom Bowley: So Tom Bowley: i'm still seeing a lot of signs that tell me this move to the Downside is not going to last. Tom Bowley: but at the same time you can't ignore it when you go below the 20 day in my mind you have to get a little bit more cautious, whatever that means to you when we get back up above the 20 day. I think that kind of changes the picture again. But let's see what happens today, and whether or not we accelerate Tom Bowley: to the downside, or because we did gap down, do we actually Tom Bowley: put in some sort of reversing candle, a bullish and golfing candle that would be incredibly bullish after going just below the 20 day. So all of those things I I think we need to be paying attention to
Tom Bowley: as we go throughout today's action, or see today's action. Anyway, that's it for me again. Appreciate everybody tuning in. I'll be back tomorrow. This is where you can catch me on Tuesdays and Thursdays Tom Bowley: stock charts TV. Just click on that at 9 am. It'll bring you right in, and you don't need to be a member over its stock charts to listen in. Listen, everybody have a great day. Be careful out there. Let's see if we get a reversal, and we'll go back over everything again tomorrow morning. Tom Bowley: Happy Trading everybody.
2022-12-11 08:25
