Power Plays Weekly Roundup + Taking Off AAPL

October 7, 2022

By Scott Redler

Before we get started, I'm going to remove Apple (AAPL) from Power Plays because it's broken down into the danger zone.

In this market, we have to play defense and even a leader like Apple can drop like a rock.

The market did not like today's jobs report, which has yields and the US dollar pushing higher.

Plus, the negative announcements from AMD (AMD) and Samsung have many worried about earnings season, which is right around the corner.

So I will continue preaching defense, because my #1 job is to keep you out of trouble. And the easiest way to get in trouble is to just throw money at stocks because you feel like you want to trade. Sometimes, cash is the best position.

Short-term, the SPY broke the opening 30-minute low, which is something you do not want to see.

I would keep a close eye on AMD. Because if that can turn up in the face of bad news, it might be a sign we are washed out. We saw that with Micron (MU) back in the summer.

Watch for a potential washout opening low next week. Perhaps that would create more buyable spots, but we need to exercise caution.

Now let's go over our remaining names:

Pinterest (PINS): this name got roughed up like everything Friday, but overall it's been holding in remarkably well considering the volatility. It caught a big upgrade Thursday from Goldman. If the market can get some upside traction, PINS is likely to be a leader, especially since people are selling out of Twitter (TWTR) and Meta (META).

Snap (SNAP): like PINS, Snap could be a major beneficiary of traders selling out of Twitter and Meta. It held above the summer lows in September. And as long as it can stay above the $10 to $10.20 area, it's a strong candidate for outperformance.

Have a good weekend. You earned it.


Scott Redler Positions Disclosure