NVIDIA Corp (NVDA) has been in the news this week after issuing a warning regarding its upcoming quarter. While it's never good to see a stock falling, this latest drop on NVDA sure seems to be more manipulation than anything else....keep reading

The S&P 500 is a market-cap weighted stock index, which means that the largest companies have the largest influence in the direction of this benchmark index. There are no companies bigger than Apple, Inc. (AAPL), which closed on Thursday with a market cap of $2.1 trillion. So AAPL is obviously the largest holding in the S&P 500. It currently weighs in at nearly 6% of the entire S&P 500. What AAPL does has a big influence on the direction of U.S. equities. Therefore, it's probably a good idea to watch and see if AAPL can hang onto price support established by the June low:...keep reading

If you're a trader, or you're considering becoming a trader, you have to understand that trading is a business and that your capital is your product. You can't give it away. That doesn't mean you can't have losses, because, believe me, you will have losses. But the key will be to keep those losses to a minimum. Don't allow small losses to morph into big losses. And that's much easier said than done. Humans are wired to always want to be right. When you sell at a loss, you're admitting that you made a mistake. But those admissions are critical to trading success. Nutanix, Inc. (NTNX) is a software company ($DJUSSW) that's been under a LOT of selling pressure the past two weeks after a massive move higher off its June low:...keep reading

Bausch Health Cos, Inc. (BHC) recently reported solid quarterly earnings results and raised guidance and the stock jumped on increasing volume as you might suspect it would. It's been nearly three weeks since and it's finally tested (or nearly tested) its rising 20-day EMA, providing a much better reward-to-risk entry. The AD line is strong and BHC has pulled back these past few weeks on rather light volume. I wouldn't completely rule out the possibility of testing the bottom of gap support at 8.67, but building a position, or starting to build a position, at its current price would not be a bad strategy:...keep reading

When stocks are downtrending, the idea is to simply follow that trend lower and lower. But after we begin to see key breakouts, then we want to adjust and look for further bullish signals to confirm the uptrend. That's where we are now on many charts. One stock that certainly looks as bullish as it has at any point in 2022 is Chewy Inc. (CHWY)....keep reading

When looking to swing trade individual stocks coming out of a cyclical bear market, I like to look for stocks that previously were downtrending, but now appear to be reversing that trend. It also helps to have a stock showing leadership characteristics and one that's being accumulated. Currently, Sea Ltd (SE) fits the bill. SE is a $47 billion online entertainment and e-commerce company headquartered in Singapore. After downtrending for over a year from November 2021 through late 2022, SE has seen a character change on its chart and is now trending higher:...keep reading

I love trading earnings gaps. I say it over and over and over, but that's the level where new information is released and the bulls and bears fight it out. In particular, I love gap ups followed up by immediate and heavy intraday buying. When good news is released and everyone wants to buy, market makers provide liquidity by shorting. When we see heavy buying AFTER the open, it's an indication of overwhelming demand. Usually, when/if a stock returns to the TOP of gap support, it becomes an excellent trading opportunity....keep reading

Anyone who's followed me for awhile knows how important relative strength is to me as a trader. I want to own stocks that lead their industry groups higher. And it always helps if the industry is leading the S&P 500 higher as well. Leading stocks in leading industry groups, that's what we're looking for. Well, sometimes the start of relative strength is not clearly visible. Let's take the semiconductors ($DJUSSC), for instance. This group has arguably been amongst the best industry groups of 2023, but it's taking a very well-deserved pause right now. It's hard to see, but there are semiconductor stocks starting to show relative strength, but it's not really clear, because the group has been weak....keep reading

Saying "technology" and "leader" in the same breath has been rare in 2022, but Hubbell, Inc. (HUBB) has definitely displayed leadership characteristics and qualities. For starters, HUBB traded at a 52-week high on Monday. There aren't too many technology stocks making that claim right now. Furthermore, volume trends are quite bullish and the Accumulation/Distribution Line (AD Line) suggests that HUBB can be bought on early morning weakness:...keep reading

I'm a HUGE fan of the 20-day exponential moving average (EMA). When we're trending higher, the 20-day EMA tends to provide excellent support and when we're trending lower, that same moving average can provide very difficult headwinds. Let me give you an example of what it looks like on the benchmark S&P 500:...keep reading

If you short-term trade and you don't understand "max pain", then you should honestly think about doing something else during the third week of each calendar month. Because "Opposite George" week is nothing to ignore. It'll cost you a small fortune over time. Maybe a large fortune....keep reading

It's not at all unusual for a stock to stumble upon a key gap support or gap resistance level, but in the case of Carmax, Inc. (KMX), there's one of each. In what may have been the worst trading day ever for KMX on September 29, 2022, the stock gapped down significantly and then proceeded to drop all day long, resulting in the loss of 25% of its market cap in just one session. As you might expect, the volume that day was monstrous - the 2nd highest daily volume since 2010. Two weeks ago, KMX climbed all the way back up to test that gap resistance at 86.42:...keep reading

One of my associates, Matt Townsend, spends a great deal of time every weekend putting together the Upcoming Earnings Relative Strength ChartList for the upcoming week. While earnings will now begin to slow down, there are still over 300 companies featured on this ChartList for this week. By using the "Summary" feature, you can compare the relative strength (vs. industry group) of every company reporting earnings this week....keep reading

We do a lot of research at EarningsBeats and much of it has to do with quarterly earnings. Last week, we saw the highest number of companies reporting quarterly results and things will now begin to slow down. However, here at EarningsBeats, we're speeding towards our next Portfolio DRAFT Day....keep reading

In Monday's EB Digest, I featured a company that I thought might report disappointing results - Rivian Automotive (RIVN). It had performed poorly relative to its automobile industry peers ($DJUSAU) and appeared to be discarded by Wall Street. Last night, RIVN reported revenues that fell way short of expectations and its production guidance was weak. Now we know why RIVN was disliked by Wall Street as it trades down more than 8% in premarket action this morning. Well, tonight's earnings is going to be all about software ($DJUSSW). Several former software darlings will be reporting quarterly results, many of which show awful relative strength, including Veeva Systems (VEEV) and Okta, Inc. (OKTA). If I had to pick one that might deliver better-than-expected results, I'd likely go with Splunk, Inc. (SPLK):...keep reading

Going up day after day. The RSI here is now 79 - very overbought. It could go higher near-term, but the longer it remains technically overbought, the harder the fall will likely be when the selling begins....keep reading

In recent weeks, I've been discussing a few stocks from our popular Short Squeeze ChartList (SSCL). The SSCL is one ChartList that we update twice a month for our members. It's an organized list of the stocks with the highest short percentages of float. On heavy volume advances, these stocks can see significant imbalances between supply and demand and, as a result, short-term inefficiencies in pricing. I first discussed TG Therapeutics (TGTX) when it cleared 11.88 closing price resistance. On Tuesday, TGTX closed at 18.81, resulting in a 57% gain since closing at 12.07 on November 17th (5 weeks ago). And TGTX still hasn't seen one day where short sellers appear to be panic buying. Also, in the latest Short Squeeze list, TGTX remains with a short % of float at 26.14%, only slightly beneath where it was one month ago. This one could really get exciting should the ascent continue. But today, let's look at Wayfair, Inc. (W) as another short squeeze candidate:...keep reading

Originally Posted on September 7, 2014...keep reading

On Thursday, Wynn Resorts (WYNN) was upgraded and the firm upgrading the stock said it could be a double within a year. As might have been expected, WYNN rose 7.48% on the session, closing at its highest level in the past few weeks. While WYNN was the stock upgraded, I believe Las Vegas Sands (LVS) is the better trading candidate within this industry. In sympathy, LVS rose a bit more than 4% on Thursday, but I believe a continuation of recent strength to be much more bullish than what we're seeing on WYNN:...keep reading

Don't take this the wrong way. I actually love the small caps, but today's article is featuring JFrog, Ltd (FROG), a $4.7 billion software company that traded over $95 per share in 2000, before falling back to under $20 more recently. I believe a double bottom has formed and FROG is now situated quite bullishly in an uptrend. Rapid earnings growth in small caps usually results in rapid price acceleration as well, especially when this asset class is in favor. Because the IWM (ETF that tracks the small cap Russell 2000) is now showing signs of an uptrend and it recently broke out of a bullish cup with handle continuation pattern, it's time, in my opinion, to take on additional risk in the form of small cap stocks:...keep reading