Power Plays Weekly Roundup + 2 New Ideas
November 3, 2023
By Scott Redler
A strong theme in this market has been the power of Gap & Gos after earnings, as we saw with Amazon (AMZN), Arista Networks (ANET), and our Power Play Netflix (NFLX).
So I'm adding 2 new Power Plays right here:
#1: Shopify (SHOP)
Shopify looks ready to lead the market near-term as it delivered a strong beat and held its earnings gap. It needs to hold the $51 to $55.51 area.
#2 Palantir (PLTR)
Palantir is in the same boat as Shopify as it really woke up yesterday and stomped out the bears after earnings. Increasing geopolitical tensions are also keeping a spotlight on this name. It needs to hold the $15 to $17.21 area to stay out of trouble.
As of now, the market is responding positively to the softer-than-expected jobs report. It was soft enough to support the case for a mild slowdown without being weak enough to drive real fear.
And one thing the bulls really like is Apple (AAPL) coming off the lows. It was at $171.50 early this morning and it's $175+ right now. If it goes green, we could extend even higher.
That said, the indices have come a long way in recent days, so it's not out of the question that we see some digestion.
The Oscillator went from -45 last Friday to +45 today, which means we are a bit overbought.
Just remember how markets work - we can go from a bit overbought to very overbought in days or even hours.
Now let's go over our other Power Play:
Netflix (NFLX): we added this two weeks ago and it's done a good job of tracking the strength in tech. It's up about $2 this morning on the post-jobs report surge. Traders like the higher pricing trend among streaming services, and with Netflix being seen as a clear earnings winner, it should continue higher in the days to come.
Have a great weekend!
Scott Redler Positions Disclosure as of 2023-11-03 at 8.14.02 AM