Welcome to Earnings Week Two!

The High in the Nasdaq For the Year

This is a critical week for the Nasdaq, as we have heavy hitters, including Tesla, Netflix, Lam Research, Taiwan Semiconductor, and more reporting.

Why is this so important? Check out the screenshot below of the Nasdaq futures. As you’ll see here, the high in the Nasdaq that we have yet to reclaim occurred just before Tesla and Netflix reported last quarter. When Tesla fell -4% and Netflix fell -6.4% after earnings on July 19th, the weight on the Nasdaq was too heavy. It started its decline and didn’t stop at typical pullback zones, either. It’s continued its choppy decline since.

A Critical Signal: The Put/Call Ratio

What’s interesting about this now, is that earnings initially threw a wet blanket on the Nasdaq. So, the question of whether it will be earnings to get this market going again is in focus. That is especially true given the high put/call ratio and impending short squeeze in the indexes. But we won’t know until Thursday whether or not NFLX and TSLA set it off. This is the major catalyst I’m waiting for. If either (ideally both of these companies) can surprise, this could be the catalyst to send the Nasdaq rocketing higher.

If not, then all we will see is a ‘whomp whomp’ move, with continued lower prices in the Nasdaq and an even wetter blanket thrown on the rest of mega-cap tech going into their respective reports, which includes Amazon, Apple, Microsoft, Alphabet, Meta, and more.

Either way, I’m sure we’ll get a directional move to trade.

Charles and I discussed this on his show, Making Money with Charles Payne, on Friday:

Earnings — Top Tickers to Trade

It’s not only Tesla and Netflix reporting this week, though they are the most critical. And, it’s not only pre- and post-earnings moves to trade, either. I love trading overnight earnings reports, and this quarter is particularly good for it due to the high implied volatility I’m seeing.

Check out my full Top Tickers to Trade watchlist below!

Click on the image above to learn how to trade these earnings reports and more!Many of these tickers have prime overnight earnings setups. Want to learn more about my earnings tools and strategies? Join me for my free webinar on Wednesday, October 18th, where I’ll show you exactly how my tools help me find the best earnings trades, backed by stats and probabilities! I’ll go through my Top 5 tickers to trade as well. Click on this link to sign up, and learn more! 

Up Next...

A Sorely Needed Pullback…

Hey traders! The market is finally pulling back today after what has been a phenomenal run. While pullback days aren’t very enjoyable when you’re long, ideally, you’ve been taking profits on the way up and trimming positions at market extensions. As I was on vacation, I have been flat, minus a small position I entered … Read more

Read More

Top Hot Zone Tickers Today…

Hey Traders! I’m back from vacation and ready to locate some setups. Whenever I come back from a break, I have a regular process I do to identify spots to focus on. It goes something like this… Start with the major indexes (Nasdaq, S&P) and the Magnificent 7 stocks (Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, … Read more

Read More

Happy 4th of July!

I hope everyone is enjoying their summer so far and looking forward to the shortened week! If you’re here in the United States, I hope your holiday is safe and enjoyable. I will personally be taking some time off this week to spend time with family and enjoy the holidays. I love cooking with my … Read more

Read More

Subscribe Today!

Want my up-to-date analysis, setups, top trading tips, and more? Be a Five Star trader, and join my free newsletter today!

Sign Up Now