We’re anticipating another volatile and eventful week as we have multiple catalysts that can impact the overall market.
We’re getting into the gist of earnings season after banks earnings last week. This week we are anticipating releases from big technology names like MSFT on Tuesday, BA and TSLA on Wednesday, and AAPL on Thursday. NFLX got destroyed after its earnings last week, so we’re interested to see if we can find new plays on the technology stocks going forward.
On Wednesday at 2 p.m. Eastern we’ll see the Federal Open Market Committee (FOMC) statement followed by Federal Reserve Chairman Jerome Powell speaking at 2:30 p.m. Eastern. The market will most likely head lower into the FOMC meeting, which is why it’s so important to understand how these economic events impact the market.
We’ve been in a short-the-pop type of environment since Powell’s last statement on Jan. 5 with incredible opportunities to short the market. The S&P 500 (ES) closed below the 200-day simple moving average (SMA) on Friday, taking out huge levels.
That being said, we’re mainly focusing on playing the overall market on SPY, QQQ, SPX, etc.
Here is our focused list:
NVDA — At large technical levels after breaching below the 200-day SMA. NVDA showed relative strength after closing above the 200-day SMA on Monday. This could be a nice pop for a dip buy if NVDA retests the 200-day SMA. Potential targets to the upside could range from $250 to $255.
Stay Focused!