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Stocks to watch during earnings

Danielle Shay joins Jill Malandrino on Trade Talks to discuss stock picking during earnings. Click the image above to learn more.


‘Sell in May, go away’ is a term that is haunting me right now. The market has shown everyone extreme volatility lately, and the easy thing to do would be to sell and get out now. However, I think there would be major momentum moves I’d miss out on if I were to do that.

After FAANG earnings the Nasdaq traveled up into a key Fibonacci resistance zone at the .786 on the daily chart, along with the key psychological value of $9000 and fell 3%. When this happens and you see key Nasdaq names falling to that extent (AMZN, TSLA, MSFT, AMD, NVDA to name a few) a pullback is expected and that’s exactly what we got.

Now, the market needed a pullback, so it’s great we are getting one, but that pullback won’t last forever, so what I’m doing is looking for stocks that are falling, identifying support on the way down, and looking for moments to buy for a ‘Run into Earnings.’ We have seen this pattern work for key COVID stocks like AMZN & TDOC rally into earnings, due to bullish sentiment, and I’m looking for that situation to occur in companies reporting later this month. However, I’d prefer to buy them on a pullback.

In this segment, Jill and discuss Nvidia (NVDA) and Take-Two (TTWO). Why these companies? Well, both are in hot industry groups, that are primed to continue to do well during the Coronavirus crisis.

NVDA is one of the best relative strength chipmakers on the market, and with everyone working from home, these products continue to be in high demand. They’ve also proven their ability to thrive in this environment, which most likely will lead to a bullish run into earnings. I’d like to buy this one around the 34 EMA on the daily chart. Typically with chipmakers, they can fall – but when they rally, they rally hard and fast.

As for TTWO, video game makers have increased demand for their products, as millions of people hunker down, and try to entertain themselves at home. This, in combination with the strong technicals on the chart, make it one of my favorite picks for a bullish run into earnings. For this one, I like long calls in the earnings series, on a pullback.

Want to hear the rest?

Click here to watch the full segment.

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