Market Pullback and Earnings Reactions: Key Stock Moves and What’s Next

What’s up, brothers and sisters? Kunal here from Bulls on Wall Street! Today, we’re diving into the stock market’s pullback and examining how major earnings reactions from Meta, Google, and others are impacting potential plays for tomorrow. The market’s been on a trend-down day with key stocks facing reversals, and we’ll analyze what this means for your watchlist.

• Market Overview:
  • The market faced a broad pullback today, with the QQQ experiencing a trend-down day following a gap down. There were brief moments where the market seemed poised for a rally, but it quickly reverted to a downward trend.
  • Despite a strong previous day, today’s downtrend reflects the market’s uncertainty amid mixed earnings results, particularly from major players like Meta and Google.
• Earnings Reactions:
  • Meta (META): Meta’s earnings report disappointed, and its stock initially dropped around 40 points before finding some support at the 50-day moving average. While it’s showing signs of recovery, the mixed reaction adds caution.
  • Google (GOOG): Google saw a gap up on earnings but ultimately filled that gap as it reversed throughout the day. This pullback casts a shadow on its bullish momentum and reflects the market’s hesitation on big tech.
  • Microsoft (MSFT) and AMD: Both companies remain in a prolonged trading range. AMD’s recent earnings didn’t inspire, and Microsoft has yet to break out of its sideways movement.
• Noteworthy Large Caps and Speculative Plays:
  • Tesla (TSLA): Tesla remains relatively strong compared to other mega-caps, but it faces resistance at its current levels. A small pullback may prime it for another bounce.
  • Reddit (RDT): After surging 40% on earnings, Reddit is shaping up as a promising play for tomorrow. With strong volume and momentum, it’s one to keep an eye on.
  • Nerds (NRDS) and Garmin (GRMN): Both stocks have shown strong breakouts following earnings, clearing multi-day ranges. These are excellent day trade candidates as they’re displaying sustained strength and volume.
• Day Trade Opportunities for Tomorrow:
  • Lemonade (LMND): Insurance company Lemonade saw a strong upward move today, making it a promising candidate for day trading tomorrow. Look for an opening range breakout (ORB) setup.
  • Snap (SNAP): Surprisingly strong today, Snapchat is showing rare movement and volume, making it a good scalp candidate.
  • VMC, SW, and XPO: All demonstrated high-volume moves and multi-month breakouts, making them ideal for day two plays.
  • Dell (DELL): Dell has shown a stable pullback to the nine EMA and is primed for another move up. A red-to-green setup could yield solid results.

With the market’s recent pullback and mixed stock market earnings reactions, staying nimble is key. Focus on day trades with high volume and clear setups, and consider avoiding swing trades until the market stabilizes. Join us in the chat room tomorrow to cover more earnings plays as we tackle another volatile trading day. Stay sharp, trade well, and let’s make it count!

Ill Also be live tomorrow on youtube in the premarket! COME check out our premarket show!

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