META Jumps NQ Dumps Pivot Points
Settles and more
Once again the Nasdaq is flirting with the13k mark, traded down to 12800 but has rallied on META Platforms earnings:
Q1 earnings of $7.47 billion, or $2.72 a share (Exp. $2.56), down from $9.5 billion, or $3.30 a share last year
Q1 sales of $27.9 billion (Exp. $28.3), up 7% from $26.2 billion a year ago.
Meta issued a second-quarter revenue forecast of $28 billion to $30 billion, while analysts were forecasting $30.7 billion.
Facebook noted concerns from inflation, supply-chain issues, the war in Ukraine, European economic headwinds, increased competition from services such as TikTok (MarketWatch)
Weeks ago we noted on our technical charts and suggested a Meta/Goog spread as it seemed Google at the time of the post wasn’t complying with the under weight tech stock reversal patterns noted in other tech stocks:
As far as the overall outlook for Tech vs SP500, long time readers know this is our trade of the year and expect a full retrace of the last 2 years move:
As far as the Nasdaq, a settle below the 100 eMA on the weekly would be massive in regards to psychology:
In other news we saw existing home sales whither for the 5th straight month:
However we then saw this post from NAR:
So with demand still scorching hot in the West and South, we can’t help but think higher rates, a slowing economy will start to cool off 32% pricing acceleration. Not to mention input costs for the average consumer is way up!
So not only are we seeing fundamental monetary and economic stress coupled with inflationary pressures, we are also seeing geopolitical instability and it is becoming more apparent that the fabric of global cohesiveness is being systematically unwound. Investors haven’t begun to truly adjust to the “new regime” but the writing has been there for quite some time. What truly amazes us is that this proxy war in Ukraine, hasn’t really fully escalated yet. Yea the Pentagon can say all they want about it not being a proxy type war, yet its very obvious, although the Business Standard ran this today:
So supplying capital isn’t support? Hmm…as we said, we are shocked Russia hasn’t escalated things further.
Strange world we live in that is for sure, up is down and left is right it seems.
On to todays winners and losers in the markets we cover:
As far as that Nasdaq goes, savvy traders can use the $13k level for both trade set ups, selling out rights and buying calls for protection or buying out rights and buying puts for protection. Depending on your outlook that is a risk averse approach. Anyway these big levels offer decent entry for both long and short players.
Alright readers, that’s it for today, keep your eyes, ears and hands upon the wheel and understand that markets are chaotic and navigating them takes an awful lot of precise angles and definitive execution, we hope our info helps. Remember if you aren’t going to subscribe at least share our work with others!
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