Power Plays Weekly Roundup
April 28, 2023
By Scott Redler
Earnings season is still rumbling on with plenty of haves and have nots.
This week Microsoft (MSFT) was the big winner with a giant gap up Wednesday that held and extended into Friday.
And Amazon (AMZN) was the big disappointment. It hit $123 after hours yesterday but sold off fast when they said the cloud was slowing.
The market showed impressive follow-through Friday, getting above Thursday's high, though tech was soured a bit because of Amazon.
Next week is going to be super busy with tons of earnings from the likes of Apple (AAPL), AMD (AMD), Qualcomm (QCOM), and Starbucks (SBUX).
Plus we have the Fed rate decision Wednesday and the jobs report on Friday.
As I've said many times, I only take options into earnings report so I can define my risk. It's too easy to get blown up in a big move against you.
I think the same way for other types of binary events like big economic reports. I'll use something like SPY puts or calls if I want to lean one way or another.
The banks are also tricky right now. The market is still trying to figure out if names like First Republic (FRC) are isolated or whether it's a more systemic issue. For now the big banks seem safe but I'd be careful with this group.
Given all that's coming down the pipe next week, I recommend you keep some powder dry because we could see some real volatility. You also want to preserve some mental energy. So know what you can handle in terms of risk.
Now let's go over our current names:
Charles Schwab (SCHW): I added Schwab last Tuesday after the big post-earnings Red Dog Reversal. It looked like it was getting into the danger zone this week when it hit a low of $50.30 Wednesday but it had another Red Dog Reversal to turn back up. It's not a barnburner but looks good for now.
Google (GOOGL): I added this one back on Wednesday after earnings. The numbers were pretty solid and Google seems to be unique in that it tries to underpromise. The stock had a huge move Thursday but gave some of it back on Friday after Amazon's disappointment.
Have a great weekend. Get some rest and relaxation because you are gonna need it with how busy the calendar is next week.
Scott Redler Positions Disclosure as of 2023-04-21 at 10.11.16 AM