EB Daily Market Report - Quick Update - Thursday, February 2, 2023

I've been watching the action today and I love the follow through from yesterday's breakout. But we do have short-term issues. First, there are 3 massive earnings reports due out after the market closes today. Here they are:

AAPL:

AMZN:

GOOGL:

Relative strength in both AAPL and GOOGL isn't great. AMZN looks the best, but AMZN had a very rough Q4. It's bounced nicely, but have we gone too far in such a short period of time? Perhaps late this afternoon or tomorrow might rectify it, but the NASDAQ 100 appears to be failing at a critical short-term resistance level with a bearish sho0ting star candle:

If we finish weak today and fail to close above 12,790.72, then I believe there's a great potential for short-term weakness. If we finish above, then I'd be a bit more bullish. In either event, the daily RSI is at 72.71, its highest level since the cyclical bear market began. In other words, we're overbought. Technical analysis is my primary tool for managing my risk. Because of the overbought conditions and multiple critical earnings reports, along with tomorrow's nonfarm payrolls report, I have reduced my exposure considerably and locked in some recent profits.

The S&P 500 cleared key price resistance from 4100-4110 on Wednesday and we've confirmed that breakout with further upside today. If we do see any disappointment(s) from AAPL, AMZN, or GOOGL and technology takes a breather, I'll be watching to see if strength moves to more value-oriented areas.

One other note. Our Short Squeeze ChartList (SSCL) has been on absolute fire. We've cooled somewhat this afternoon, but the moves that many have made over the past week or two has been staggering.

Also, I'm still working on the February Seasonality Report. I will have that completed within the next couple hours and will have the ChartList available on our website by tomorrow morning.

Happy trading!

Tom