EB Daily Market Report - Quick Update - Tuesday, October 24, 2023
Upcoming Schedule
I will be flying to Seattle tomorrow (Wednesday) to meet with the StockCharts.com team. As a result, we are canceling our 9am ET Trading Places LIVE shows on Wednesday and Thursday. Also, there will be no Live Trading Room at 10am ET on Wednesday. We'll be back to our normal TP Live schedule next Tuesday.
While I'm in Seattle, John Hopkins may provide a quick market update for everyone. I'm quite sure he'll do so on Wednesday as I'll be flying out west during the trading day. I have guest appearances lined up at StockCharts as well as strategic meetings throughout both Thursday and Friday. On Thursday, I'll be doing a live Your Daily 5 and on Friday, I'll join Dave Keller live on The Final Bar at 4pm ET. I believe that I'll also be interviewed for perhaps an hour or so in a special that will be aired on YouTube at some point over the next few days.
Model ETF Portfolio Draft
We will be hosting our latest Model ETF Portfolio Draft later this afternoon, beginning at 5:30pm ET. Room instructions were sent out an hour or so ago in a separate email. If you cannot attend today's live event, it will be recorded and available for you at your earliest convenience. I'll explain why I believe our approach to structuring an ETF Portfolio is FAR superior to anyone else. I hope to see you later today!
Market Update
The S&P 500 is up roughly 0.8% with 40 minutes left in the trading day. Our other major indices are up by similar amounts, with slight relative outperformance by the NASDAQ 100 ($NDX) as it gets set for two HUGE earnings reports after the bell today. Microsoft (MSFT, +0.65%) and Alphabet (GOOGL, +1.82%) will report their latest quarterly results after the close. Tesla (TSLA) and Netflix (NFLX), two other NASDAQ 100 giants, reported last week with TSLA missing both revenue and EPS estimates, while NFLX beat both. I really like both MSFT and GOOGL for the long-term, but these two can be quite volatile and we don't know exactly what to expect with earnings - just as we saw last week with TSLA and NFLX.
Keep in mind also that we remain locked in the WORST calendar week of the year, though with every 24 hours, we get one step closer to the October 27th close. That marks the beginning of the absolute BEST short-term (next 9 days through November 5th) and intermediate-term (through January 18th) periods of the entire year. History tells us that bottoms often times form during the month of October.
In the very near-term, our major indices are dealing with a bit of overhead resistance in the form of 20-hour EMAs. The following illustrate these levels on the S&P 500 ($SPX) and NASDAQ 100 ($NDX):
$SPX:
$NDX:
This isn't massive resistance, but if we did move lower one more time, we'd very likely see solid positive divergences print on both charts. Something to think about as we head into several HUGE earnings reports the next few days, starting with MSFT and GOOGL later today, then Meta Platforms (META, -0.40%) tomorrow.
Happy trading!
Tom