Power Plays Weekly Roundup
March 24, 2023
By Scott Redler
The market had a big surge on the Fed meeting Wednesday, and a big midday rebound Thursday.
However, it does feel like things may be pointing lower for the near future.
The financials, especially the regional names, are very shaky. Deutsche Bank (DB) is now a big focus after the Credit Suisse (CS) takeunder. It looks like XLF could head to the 2020 lows under $30.
I'd keep a close eye on JP Morgan (JPM). Since it's largely considered "best in class," the market does not want to see this name go down. See if it holds the Friday low of $123.77. A break below could get the bears growling.
Tech has been holding everything up, but if we start seeing some selling here, it could infect everything. So keep a close eye on the leaders, especially Nvidia (NVDA), which has been the real leader in 2023.
So I may be fast to exit Power Plays if thing start to change fast.
We are seeing some standouts to the upside, like Netflix (NFLX) and C3.AI (AI), but this is not an environment for chasing and buying strength.
Now let's go over our current Power Plays:
Apple (AAPL): I added this to Power Plays last week because it looked ready to lead the market. It surged this week so I took off half for Power Plays on Wednesday. As you can tell based on my comments above, I'm approaching this market with serious caution so we don't want to run the risk of giving gains back.
Microsoft (MSFT): This name has had go-to status because of strong technicals and the AI story. It's showing just a bit of relative strength this morning in tech so I'd like to see that continue. If this market hangs in, this name should be a big outperformer. Still, let's stay on our toes.
Have a great weekend. Get some rest and relaxation because you earned it.
Scott Redler Positions Disclosure as of 2023-03-24 at 9.48.05 AM