Power Plays Weekly Roundup
May 12, 2023
By Scott Redler
This was a pretty choppy week where you had to be super specific with your names and entries to make money.
Tech was strongest overall but not by a whole lot.
And the Friday action has been pretty shaky with lots of names going green to red, perhaps most notably Tesla (TSLA), which could not hold any of its gap on the Twitter CEO news.
The early strength was sold and things accelerated lower after the weaker-than-expected University of Michigan Consumer Sentiment Survey.
Earnings season is coming to an end, though we'll have some big retail reports next week like Home Depot (HD), Target (TGT), and Wal-Mart (WMT), plus some other key names like Applied Materials (AMAT) and Baidu (BIDU).
Overall, this feels like time to be a bit more careful.
You need to have good reasons to be in longs, and you have to honor your stops just in case things go South in a hurry.
For now, watch SPY $411.22. If that doesn't get reclaimed, risk can happen fast so stay on your toes.
Now let's go over our remaining names:
Google (GOOGL): We took off half for Power Plays on Thursday as the stock had been on a tear off Wednesday's I/O event, which was heavily focused on AI. Funny how a few months ago, people thought GOOGL was dying because of competition from AI. That shows you why you can't just blindly follow news - you have to respect price action first and foremost.
Apple (AAPL): The stock went ex-dividend on Friday, which makes it a bit tricky to analyze right now. But overall, it's pretty choppy and grinding lower. The $172ish area is pretty big support so hopefully that gets reclaimed to set the stage for better action. I would not be too big in this now.
Have a great weekend. Get some rest and relaxation!
-Scott