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It’s a big, BIG day for earnings with Tesla (TSLA) and Google parent Alphabet (GOOGL; GOOG) reporting after the close, along with one of my top stocks, Texas Instruments (TXN). In this climate, traders need to be particularly cautious... Recent observations and data suggest several factors that require careful consideration to navigate this volatility. One of the most significant elements on the horizon is the upcoming earnings reports from FANG stocks. The market's momentum has been overwhelming, indicating that stocks might be getting ahead of themselves. The imbalance between blue chips and tech stocks is a red flag for potential overextension. A critical indicator of market overextension is the number of stocks hitting 90-day highs. There are about 642 stocks on this list, a significant jump that typically signals the market is overdone on the upside. When this number exceeds 450, it usually means the market is reaching a peak, warranting caution. One of the most critical factors to watch this week is the upcoming earnings reports from FANG stocks. Here's a brief overview of what I see…
Given these signals, it's crucial to avoid overtrading. The market shows signs of being overextended, and momentum indicators suggest a potential pullback. Trading large sizes in this environment can be risky. With upcoming holidays and a lack of new FED data, the market's direction remains uncertain, making a cautious approach advisable. Other upcoming earnings reports and economic data are crucial for gauging market direction. Key reports to watch include housing starts, industrial production, and the Beige Book. These will provide valuable insights into the market's health and potential future movements. Stay informed, analyze the data critically, and adapt your strategies to the evolving market conditions. Remember, in times of market uncertainty, caution is not just advisable — it’s essential. Be sure and join me at noon ET TODAY — I’ll have a free options trade for everyone, in addition to some live trading and showing you how I make moves along with institutional traders. We’ve done so well, I have a better than 95%** win rate in my Trading Pit. Come see exactly how I do it! Roger Scott Roger Scott Trading Follow along and join the conversation for real-time analysis, trade ideas, market insights and more! Telegram: https://t.me/+_vmfwkeP8fA5YWQ5 *This is for informational and educational purposes only. There is an inherent risk in trading, so trade at your own risk. The Active Trading Hour Is About to Kick Off We’re getting ready to start my active trading hour, live at 1 p.m. ET TODAY, July 23! Just tap this link at 1 o’clock! I’m going to use my “Whale Watcher” tool to hunt for trades, so you should DEFINITELY join me. As a special bonus, you’ll also get my No. 1 options trade right now… totally free… when you join us in today’s virtual trading room. And while we cannot promise future returns or against losses, there’s no reason to miss out! Here’s your special access link to join me LIVE Want to get a link to TradingPub content, trade ideas, real-time market analysis and educational tidbits? We have you covered! Telegram is an entirely free messaging app and getting access is as easy as 1… 2… 3… 1. Download Telegram on your mobile device (Before you can add Telegram to your desktop computer, you must download the application on your phone and create your account: To download to your iPhone, click here. To download to your Android device, click here. After the download is complete, please create an account. NOTE: You can manage your privacy settings by clicking “Settings,” and then “Privacy & Security.” 2. Download Telegram on your desktop: Once you’ve downloaded Telegram onto your mobile device and created your personal account, you can download it onto your desktop computer. To download onto your PC, click here. To download onto your MacOS, click here. 3. Then add our channels by clicking these links!
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