Stocks: The Good, The Bad and The Ugly

Bellwether tech stocks, streamers, and trash stock that are trash

Good morning,

Earnings season is in full swing and the tug-of-war between individual equities has resulted in two of the least volatile days for the S&P 500 in years. This week’s report will review several themes, but overall it seems to confirm what I have been seeing from the top down: Growth is improving from a weak technical position, defensives are losing relative leadership, and cyclicals are pausing after strong runs.

These add up to a net market positive in my view, but the key will be cyclicals breaking out higher along with the index.

Specifically, this report will review:

• Bellwether tech stocks

• Top energy stocks

• 2 solar stocks going in different directions

• Streamers that are now working

• Trash stocks that are trash

• Stocks emerging from rounding bases

• and more!

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Bellwether tech stocks

NVDA knocking on the door of a breakout

Nvidia shares broke out to their highest level relative to the S&P 500 since April earlier this week, and the absolute chart is hoping to follow suit. A move above $195 would complete an inverse head and shoulders pattern that measures to $276.

Rage Against the Microsoft

All anyone could talk about yesterday was Microsoft, so I’ll give my opinion. The stock staged an impressive reversal on Wednesday, barely closing down after initially falling 4%. However, even at the lows the technical improvement recently wasn’t damaged and it seemed like there was a lot of hate for this report and the stock. Lows in? A move up above $245 could unlock more upside tactically.

Key levels on GOOG

Alphabet got hit with a widely expected antitrust suit earlier in the week, but the stock sell-off has been rather muted. Bulls need to break the stock up through $102, otherwise, GOOG risks another test of its critical uptrend line that stretches back to 2008.

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Energy stocks at new highs