Watch for Positive Earnings Reactions for Trades in a Choppy Market – October 27, 2021
F SPY TSLA GOOGL
This is Scott with your Chart of the Day. We are actually going to look at 3 charts tonight. This is a little thing that I am noticing in the market, right here, right now. As you know, it’s kind of been a choppy market the last couple of days. We had a nice smooth ride on the S&P 500 ( NYSEARCA: SPY ). A nice smooth ride off the lows and have just been kind of chopping around this zone here near the highs the last few days. But what I am noticing is some pretty positive earnings reactions that turn into great trades.
We will start things off with Tesla (NASDAQ: TSLA ). As you know, Tesla (NASDAQ: TSLA ) had earnings a couple of days ago. And before earnings, it was just kind of around that 860.00 level. The stock opened up the next day, after reporting earnings, it opened lower and then had a massive move coming on way higher than average volume. The following days saw Tesla (NASDAQ: TSLA ) well over $1,000.00. And so these positive earnings reactions can turn into some pretty great trades.
We will look at Google ( NASDAQ: GOOGL ) today. Google ( NASDAQ: GOOGL ) announced earnings last night, the stock opened basically flat today, and then, boom, massive move, higher than average volume. This turned out to be a great trade and one that Dan Fitzpatrick at stockmarketmentor.com added to our active trade list today.
Now, let’s take a look at Ford ( NYSE: F ). As the close happened, Ford ( NYSE: F ) closed at the lows. But as they announced earnings, boom, positive reaction, higher than average volume. So I think Ford ( NYSE: F ) could be a stock to watch into tomorrow. Now, what we will want to see, if the stock does open higher or around the area that it is at right now, is a nice strong move through that 16.70 level.
Ideally, in this market, I really want to see stocks make new highs and do it on higher than average volume. As it stands right now, here in the post-market, it is kind of coming close to that area. But we will see how it opens tomorrow because sometimes you can get some whacky moves aftermarket of pre-market and then it doesn’t translate during normal market hours.
So keep an eye on Ford ( NYSE: F ) tomorrow. We will want to see a strong move through that 16.70 level coming on higher than average volume. And it’s a great reminder, that if you are looking at a stock and they have positive earnings reports, look for positive reactions.
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