EB Daily Market Report - Brief Update - Tuesday, July 22, 2025

Brief Market Update

Not much has changed today. The NASDAQ is lagging after leading in recent sessions. Small caps are performing better today after lagging recently.

Gold ($GOLD, +1.19%) is trading above $3400 per ounce and threatening to close above that level for only the 4th time in its history. It's yet to close above $3500 per ounce. Crude oil ($WTIC, -1.41%) is heading in the opposite direction.

Home construction ($DJUSHB, +9.82%) is having a HUGE day, with KB Home (KBH, +8.63%) and Toll Brothers (TOL, +8.06%) among the top performers on the S&P 500. That's helping to lead discretionary stocks (XLY, +0.52%).

Overall, defensive- and value-oriented stocks are showing strength on today's session. Health care (XLV, +1.40%), easily the worst-performing sector of 2025, is getting a big boost from biotechnology stocks ($DJUSBT, +2.42%). Pharmas ($DJUSPR, +1.77%) are also strong today, led in part by Johnson & Johnson's (JNJ, +1.36%) attempt to break out to a 52-week high.

The only sector lower today is technology (XLK, -0.96%), which could probably use a breather. Semiconductors ($DJUSSC, -2.12%) are very weak, led by semi equipment manufacturers like KLA Corp (KLAC, -4.40%) and Lam Research (LRCX, -4.32%).

ChartLists and Trading Strategies

Given a bit of selling on the NASDAQ today, here are 6 potential trade candidates on the NASDAQ 100 where a tight stop could be used for a short-term trader:

CDNS:

DASH:

HON:

MSTR:

PLTR:

TXN:

All 6 of these stocks have seen slight pullbacks to initial areas of support. I should mention that earnings season is kicking in, so many stocks will be reporting earnings. Check the earnings dates for any stock you trade, so that you're not blindsided. For example, TXN reports its quarterly results after the bell today. Buying on its 20-day EMA is much riskier simply because new fundamental news will be released later today that very likely will impact tomorrow's trading on TXN.

HON reports its latest quarterly results on Thursday morning, while the other 4 stocks are a week away or more from releasing their quarterly results.

Happy trading!

Tom