Nasdaq and Silver Ramp
Earnings Highlight CMG & TSLA
As many of our subscribers know, we highly covet our methodology and given our programs propensity to continue to rely on QE as its main source of inspiration, we had to note the GFBP Positions Tracker did catch the massive up move in the Nasdaq today as signs of FOMO seem to have ruled the day. Perhaps all on the precipice of a renewed stimulus and potential deferred payroll tax cut! We know our subscribers are learning from our tracker and we know that membership does have its privilege’s so we hope you consider joining us and learning more, not only about the markets we cover, but potentially also discover a bit more about your own potentially undiscovered unique talents.
So when we look at today’s action we have to look at a couple of key charts, first and foremost the Nasdaq which after clearly holding their 10500 important level, now has its sights set on new highs above 11053:
When we look at the SP500 we can see that 3165 has held and that now we target the gap up above:
The final chart for our futures traders is that of Silver. The Magnelibra GFBP Positions Tracker has yet to jump back in on this as it is desperately trying to exhibit patience, but perhaps we are the greater fool, nah we will stick to the system! Anyway the channel is clear as are the upside short term objectives:
It is a big earnings week and just after the close IBM reported Q2 results:
Annual Revenue slid 5.4% - the biggest annual drop in sales since Q4 2015 - amid the spread of COVID-19, even as Red Hat sales boosted its cloud business up 30% Y/Y to $6.3BN.
However Q2 revenue rose to 18.1$BN, even as Wall Street was expecting another 20 year low in the top-line.
Cloud and cognitive software revenue $5.75 billion, better than the estimate of $5.58 billion
Global business services revenue $3.89 billion, better than the estimate of $3.74 billion
Global technology services revenue $6.32 billion, -7.6% y/y, also better than the estimate of $6.17 billion
Systems revenue $1.85 billion, +5.6% y/y, estimate $1.65 billion
EPS that came in at a whopping $2.18, far above the $2.07 expected (which was a 31% drop Y/Y)
IBM was up 5% in after hours trading around $133, here is a link to all the earnings coming out tomorrow, Earnings for Tue. 7/21/20 and this Wednesday, Earnings for Wed 7/22/20
Speaking of Wednesday, obviously we know Tesla will be on everyone’s radar and we know the run from $300 to $1600 has been epic, but here is another one we are currently watching, Chipotle (CMG), $32.5B market cap, 97 PE and a similar chart structure to Tesla, but just a bit behind:
Here is the chart of CMG and we most note the .786 extension level it sits on and we couldn’t help but peek at this Friday’s $1100 PUT which is trading $15:
Ok that’s it please share our work, its the least you can do to get our good information out there to the masses, don’t hoard the knowledge, spread it, collaborate as we can all benefit from the knowledge that we all have and possess. Have a great night.
-Magnelibra Econemotions
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