Power Plays Weekly Roundup + Taking Off MSFT/GOOGL 

April 21, 2023

By Scott Redler

First, just a quick reminder in case you missed my earlier alert: we exited Amazon (AMZN) from Power Plays into the morning strength.

And second, let's take off Microsoft (MSFT) and Google (GOOGL) as well. Both these names report earnings next week.

And as you probably know, I don't like to take stock into earnings.

I use options or spreads to define my risk.

Because as you saw with Tesla, you are at risk of having a big blowup in your face.

So I'm flattening these out.

Speaking of earnings, things are about to heat up big time next week with a ton of tech reports.

So far it's been a period of haves and have nots.

Netflix (NFLX) and Tesla (TSLA) both underwhelmed. And Tesla's really been hit hard.

Meanwhile, some of the banks like JP Morgan (JPM), Wells Fargo (WFC), and Citi (C). Goldman Sachs (GS) and Morgan Stanley (MS) both found dip buyers as well.

And if you keep some powder dry, you can scoop up oversold names after earnings, like we did with Charles Schwab (SCHW) this week.

The tape remains pretty tricky, with Thursday's action being particularly erratic.

There's still a lot of misdirection and potholes that pop up out of nowhere.

So I'm expecting to be more Tactical next week as the pace of earnings reports really picks up.

Now let's go over our remaining name.

Charles Schwab (SCHW): I added Schwab on Tuesday after Monday's big post-earnings Red Dog Reversal. It hit a high of $56.26 on Wednesday which was pretty impressive. I still see potential for a bigger oversold bounce here.

Have a great weekend. Get some rest and relaxation because you are gonna need it!


Scott Redler Positions Disclosure as of 2023-04-21 at 10.11.16 AM