Power Plays Weekly Roundup 

January 20, 2023

By Scott Redler

We added 3 new names plus a bonus options idea in Pinterest (PINS) last week, but as I've been saying, it's time to play it safe.

From a big-picture perspective, the tape is still working off somewhat overbought conditions.

And we are just entering the heart of earnings season.

For now, things are pretty stock-specific. There's no "across the board" waves ups or down.

If you look at the banks, JP Morgan (JPM) and Goldman Sachs (GS) got punished after earnings, but Morgan Stanley (MS) has held up well.

Netflix (NFLX) was the big tech earnings name this week, reporting strong subscriber numbers last night. It will be important to watch how this stock progresses throughout the day. It could have a big impact on tech ahead of next week, which has reports from the likes of Tesla (TSLA), Intel (INTC), and plenty of other big names. For now, Netflix is pretty strong which is helping sentiment.

On the Fed front, it seems like they are going to stay hawkish, even with signs of disinflation around the world. The market may be pricing in a pivot of sorts already, which may not be the best thing in the world.

There's still risk of downside ahead so now is not time to be too aggressive.

Now let's go over our names:

SoFi Technologies (SOFI): I added SOFI because there's been a lot of insider buying, and it's had a nice January effect move. We took off half for Power Plays, and I'm going to let it ride for now. If spec names stay strong, SOFI could lead.

XBI: Biotech's had a really nice start to the year, but it got ahead of itself. So we took off half for Power Plays last Friday. Just like with SOFI, it's smart to play things safe because the market is still working off overbought conditions. However, XBI is showing relative strength today, so it may continue higher.

Occidental Petroleum (OXY): Energy has been perking up, and I always like to play OXY when oil is moving. The buying from Warren Buffett is another plus. OXY been a bit sluggish, but it might be ready to break out of its range.

Enjoy your weekend!

And stay tuned for more updates next week.


Scott Redler Positions Disclosure as of 2023-01-20 at 10.16.17 AM.png