As we expected, stocks lost ground on Monday, as investors booked profits after last week's advance. The slide came ahead of a busy week that includes the Federal Reserve's interest rate decision and a flood of high-profile earnings reports.
The Nasdaq led the retreat, falling by about 2%. The decline included a bout of profit-taking in the EV sector. Price cuts from Ford (
F
) prompted selling throughout the sector. This included slides in GM (
GM
), Tesla (
TSLA
), Fisker (NYSE:FSR) and Rivian Automotive (
RIVN
).
Chinese stocks also took a step lower. Alibaba (
BABA
) ranked among the decliners, falling amid reports that the company might consider moving its headquarters out of China.
But, I prefer to call it profit-taking ahead of what is legitimately a huge week for the market.
Chart: QQQ daily
From tech side of analysis, QQQ opened lower around 292ish and quickly traded back to its 5 mins 8&21 area, and kept falling, prior to the market close, Qs gave a 5 mins "hammer" doji on the 5 mins chart. But still 2 points away from 288ish 5 mins support, which is also above 8 EMA daily.
Today, Advanced Micro Devices (
AMD
) will lead the tech earning, and report its Q4 earnings results after market close. Investors will be wary after Intel's (
INTC
) weak Q4 results and a shocking forecast for Q1, leaving many on Wall Street to question the company's cash position and financial health. Therefore, all eyes will be on AMD's 2023 outlook, especially amid dismal projections.
Chart: AMD daily
From the tech side, AMD has already reached 76ish weekly basis resistance, if the earning is good, it will breakup, even though the earning was not that optimistic, I think somewhere around 67.5ish still has buying power waiting to get in. As what I said yesterday, "Upcoming tech earnings could provide the crucial catalyst to determine the near-term direction for Qs".
Link to yesterday's idea
Please feel free to express your ideas and thoughts in the comment section.
The Nasdaq led the retreat, falling by about 2%. The decline included a bout of profit-taking in the EV sector. Price cuts from Ford (
F
) prompted selling throughout the sector. This included slides in GM (
GM
), Tesla (
TSLA
), Fisker (NYSE:FSR) and Rivian Automotive (
RIVN
). Chinese stocks also took a step lower. Alibaba (
BABA
) ranked among the decliners, falling amid reports that the company might consider moving its headquarters out of China. But, I prefer to call it profit-taking ahead of what is legitimately a huge week for the market.
From tech side of analysis, QQQ opened lower around 292ish and quickly traded back to its 5 mins 8&21 area, and kept falling, prior to the market close, Qs gave a 5 mins "hammer" doji on the 5 mins chart. But still 2 points away from 288ish 5 mins support, which is also above 8 EMA daily.
Today, Advanced Micro Devices (
AMD
) will lead the tech earning, and report its Q4 earnings results after market close. Investors will be wary after Intel's (
INTC
) weak Q4 results and a shocking forecast for Q1, leaving many on Wall Street to question the company's cash position and financial health. Therefore, all eyes will be on AMD's 2023 outlook, especially amid dismal projections.
From the tech side, AMD has already reached 76ish weekly basis resistance, if the earning is good, it will breakup, even though the earning was not that optimistic, I think somewhere around 67.5ish still has buying power waiting to get in. As what I said yesterday, "Upcoming tech earnings could provide the crucial catalyst to determine the near-term direction for Qs".
Please feel free to express your ideas and thoughts in the comment section.