9/25/22 – Sunday Stock Talk Write Up
Will we take out the lows from June and selloff into the start of earnings season? This is the $64,000 question taking place in the markets right now. Given the weakness overall on the daily and weekly charts I would say that we trade down into those levels, and most likely lower. 3550ish area is where I’m looking at a potential short term bottom where we could bounce for a week or two. If that level fails then 3300 is next up and would put us right about the highs from February of 2020 before the Covid push lower.
As for this week and things to do it is a pretty quiet week across the board for news announcements with Powell set to speak on Wednesday and do what he does. Earnings are still the left over names, but $BBBY $CCL & $NKE could be interesting names to watch later in the week. When I say ‘left over’ names I’m literally talking about the stragglers like $BB which reports Tuesday after the close. Where do you even buy a BlackBerry now, and secondly, why?
As for a trade idea here going into this week there is slim pickings at the moment. Although if we can get some weakness Monday/Tuesday and take out those June lows then on a flip of intraday trend we could get a bit of a rally into Wednesday/Thursday. The downside is still the path of least resistance here, but I’m not opposed to trading these 200+ point Nasdaq short covering rallies to the long side.
Let’s have a great week and keep in mind that earnings season starts back up in about 3 weeks so there is no reason to press anything here if nothing sets up.