Stock Trends

Earnings reactions, levels to watch after the bell and REITs!!

Good morning,

It’s the heart of earnings season and I’m showing you the market reactions and set-ups to all the most important stocks.

Today’s report will look at:

• Earnings misses

• Earnings pops that were good but not good enough

• Key levels to watch after today’s bell

• Healthcare stocks

• Apartment REITs breaking out

• and more!

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Bad earnings reactions

CDNS has finally rolled over, making a 3-month low

We sold former Blue Chip Hot List stock Cadence Design Systems too early but the stock has now broken down. CDNS just made its first 3-month low since the 2022 bottom and is below declining 21 and 50-day moving averages. Relative strength has also broken trend.

Netflix loses the $580 level

NFLX fell 9% last Friday, pulling the stock back below the $580 pivot point. The stock tried to rally early this week but failed at the underside yesterday. Risk to $500 as long as we remain below that gap.

Meta set to create one hell of an island

At the conclusion of last night’s earnings call, META was trading at $418 or 15% lower from Wednesday’s closing price. Today’s action and close are what matters, but anything in that range will keep META above the 2021 all-time highs and 200-DMA, but leave the last quarter as a giant island. I don’t suspect we’ll reclaim $453 anytime soon.

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Good but not good enough

Highly skeptical of Tesla’s move