This week was all about technology earnings, and Amazon (AMZN) was the story of the week, gapping down almost 7% at the open this morning after announcing Thursday evening what were (apparently) “unsatisfactory” earnings.
Despite the AMZN puke, indexes held up incredibly well today as both the ES (S&P 500) and NQ (Nasdaq) continued to hold structure in a bullish daily squeeze (see charts below). At this point, we will be focusing on these daily squeezes to serve as our compass for the next potential move. While there is the possibility the upward trend continues into next week, we are also taking into consideration the potential that the market may need to “cool down” and trade sideways for a bit. With that being said, we will be patient and give any potential trades moving forward ample time to work out.
In terms of where the big potential play may be in the coming weeks, we are still huge fans of the chipmakers (semiconductors) here. SMH (semiconductor exchange traded fund, or ETF) looks poised to fire its daily squeeze to the upside which fairs well for our positions in my Compounding Growth Technique Mastery in AVGO (Broadcom) and NVDA (Nvidia) (see charts below).
While technology has run the show as of late, is it the semiconductor’s time-to-shine? We think so! And while we think the group is getting ready for a solid move, we suggest, as always, focusing on the stocks within the group that offer the best setups and entries. AVGO, NVDA, and AMAT (Applied Materials) are our favorites here, while AMD (American Tower Corp) and QCOM (Qualcomm) have quickly become too extended for us to chase an entry here.
TSLA (Tesla) is another name of interest for us here as well, and we’re looking to see if the weekly squeeze is (finally) ready to bust a move (see chart below). Though the weekly chart looks solid, the daily chart isn’t the cleanest setup yet. There are a few things you want to take into consideration if you’re going to pursue a trade here, such as the put credit spread we opened yesterday in the Compounding Growth Technique Mastery program.
In this Sunday’s premium video, we’ll go into details surrounding technology, the chipmakers (semiconductors), Tesla, and a few other spots that could offer opportunity in August. So keep an eye on your inbox this weekend for the video!
Stay Focused!