Trading Places Live! November 30, 2022

Trading Places Live! November 30, 2022

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Tom Bowley: Good morning, and welcome to this Wednesday, November thirtieth twenty Tom Bowley: two thousand and twenty-two addition of trading places live and earnings beats dot com I'm. Tom Boley, Chief Markets tragedy at earnings beats, and i'll be your host in the next thirty minutes, featuring everything you need to know, as you prepare for the trading day ahead. Tom Bowley: Well, uh, today's last day of November. Unbelievable eleven months in the books one more month to go, and then we've got twenty twenty-three. Tom Bowley: I don't know about everybody else, but it seems like the year has just flown by really hard to believe we're heading into the Christmas season. Another New year around the corner, Tom Bowley: but it is what it is uh time doesn't stop Tom Bowley: uh this morning. Um, you know we've had a little issue here with the market, especially on the Nasdaq side of late. Tom Bowley: Um and i'm going to point out some of the issues here in just a minute.

Tom Bowley: Um futures were up a little bit stronger earlier, but they have um. Tom Bowley: They have come back down right now, or as of ten minutes ago. The dial futures were down about four S. And P. Five hundred futures were flat. Nasdaq features up about ten. Tom Bowley: Um, Of course everybody waiting for Fed Chief Pal uh he's going to talk a little bit about the economy, and so I guess everyone's on the edge of their seats, and of course we know Tom Bowley: that between the combination of the fed and the inflation reports that's been when the market has struggled the most when they've had to deal with those two, Tom Bowley: you know items uh firsthand, so we'll see what happens today. I do think we're sitting at a pretty key area in terms of support for the market, especially on the Nasdaq. Tom Bowley: So this is going to be really interesting. Uh the ten Year treasury yield this morning is up about three and a half basis points three point seven, eight. Tom Bowley: We were as low as three hundred and sixty-five yesterday. So the fact that we're now back up to three hundred and seventy-eight. You can see there are a lot of folks uh bailing out of treasuries ahead of the um fed speech today, Tom Bowley: and we'll see whether or not you know that makes an impact or has an impact on both bond and stock markets. But that will be later today. So we watching for that throughout the day.

Tom Bowley: Um, Tom Bowley: anyhow, before I jump into everything because I do have some interesting charts to show you. I thought we would go ahead and start Tom Bowley: over at earnings. Beats, as we always do want to just make sure you're aware. If you are new to earnings, beats and go, and you go to earnings, beats dot com. You can scroll down, and you will find our free earnings. Beats digest Newsletter. This morning I wrote an article Um, a brief article in there. All these articles are pretty short, usually just a couple of paragraphs in a chart. Tom Bowley: But today I was writing about our short squeeze chart list and the stock that's the most heavily shorted stock out there right now, which is bed, bath and beyond Tom Bowley: thicker symbols. Bb: Why, Tom Bowley: and just showing how you know Tom Bowley: these heavily shorted stocks you want to be in them when they're making their moves for this potential short squeeze. Tom Bowley: But buying and holding Tom Bowley: is probably not the best idea, because they just continue to drift lower and lower. Anyhow, that was the subject of this morning's eb digest. We try to cover a lot of different topics, mostly relating to earnings and relative strength. Candles, gaps, um moving averages, trend lines, all of those types of things.

Tom Bowley: But um, I think it's a very educational newsletter. At least that's what I try to to make it. And uh all it takes is a name and an email address. Hit that subscribe button. We'll get you set up Tom Bowley: also all of our free events you'll be invited to if you're on our eb. Digest Newsletter subscriber list. So uh we do a bunch of them throughout the year. We have a huge one Tom Bowley: coming up Saturday, January seventh. That will be our market vision. Two thousand and twenty-three event, Tom Bowley: where I will give you my outlook for two thousand and twenty-three. I think the outlook I've given the last three years have been pretty spot on uh, we'll see what happens in two thousand and twenty-three. But anyway, mark your calendar for Saturday, January seventh, and if you don't want to miss it, please make sure you are signed up

Tom Bowley: for the earnings beats digest newsletter. There's no credit card required for this, by the way, uh, and you can unsubscribe at any time. But I should check that out, Tom Bowley: all right. So what happened yesterday? Tom Bowley: Well, Tom Bowley: the Dow Jones, as you can see, went up three points. So not really much. There s and P. Down six. Tom Bowley: Okay, not really too bad. We're hanging above the twenty day, the dow. You can see we got up right about to where we had been back in August. I think we we close just above last Wednesday and Friday, and we're starting to back off of it a little bit. Tom Bowley: Looks to me like, maybe a slight negative divergence. Tom Bowley: So maybe we'll start to see some of that money rotate away from the dial that's been carrying it higher. But at least, for now. Um! The dow still seems pretty healthy up above that twenty day moving average and a move back above the August high and the high we saw last week would be Bullish S. And P. Again trending above the twenty day, I think, still looks good here.

Tom Bowley: Here's where the problems come in on the Nasdaq, Tom Bowley: and it's a little surprising, because since the October Cpi came out back on November tenth, we've seen the ten year treasury. You'll drop Tom Bowley: as much as almost seventy basis points. Tom Bowley: And so what I would have expected if you had told me ahead of time, hey? The Ten Year Treasury it's going to drop seventy basis points. I would have expected the Nasdaq to look like this and the dial to look like this, and it's not happened. We've seen kind of the opposite. Tom Bowley: Um! But again i'll show you some other charts on this. I don't want to um. Talk about it too much right here, but i'll show you a couple of charts that I think make it pretty visual as to what's taking place in the market right now, which is a little concerning. I'll be honest

Tom Bowley: uh mid caps up seven small caps up five, so you can see bifurcated action, small caps, mid caps, the dow all up S. And P. Nasdaq down from a sector perspective, we saw real estate leading up uh almost one point, seven percent after a pretty rough day. Um, the prior day Tom Bowley: energy. Same thing after being down the prior day, bounce back nicely up one and a half yesterday. Industrial is up uh six, tenth of one percent financials right about that same amount. The big loser yesterday was technology Tom Bowley: technology definitely taking it on the chin, a little surprising to me. And you can see the Xlk finished at one hundred and twenty-nine, forty-six,

Tom Bowley: which we had one hundred and thirty. Is that resistance We broke out we held one hundred and thirty on the pull back there. So we are little below one hundred and thirty, and then also the twenty day moving averages at one hundred and twenty-nine sixty-eight. Tom Bowley: So we're slightly below the twenty day we're slightly below price support. I really would like to see Tom Bowley: the Nasdaq bounce from here, and that's why I think this speech today with the fed is going to be pretty critical in the near term, because if the fed, if if that chief pal does what he's done in the recent past, which is, try to spook the market. Tom Bowley: Um! And I say, try to spook the market. I mean he's trying to spook the market. He wants. Tom Bowley: He wants things to slow down, Tom Bowley: so if he can't get it through rate hikes. He's going to get it by talking tough. He'll do whatever it takes. So i'm a little nervous with the fed speaking with Pal, speaking today, knowing that the technology group is sitting right here on Edge

Tom Bowley: Doesn't mean, I think we're going to go back down to the Lows, although it's possible. Tom Bowley: I just feel like we've got to be careful here in the near term, especially if the key areas of the market, the growth areas react negatively to whatever fed Chief Pal says Tom Bowley: so. That will be worth watching. I'm sure there's gonna be a lot of traders keeping an eye on that, probably with one foot or one finger on the sell button on technology stocks. So let's see not only how the market does, but how the relationship between the key indices. How does the Nasdaq do relative to the S. And P. Five hundred, Tom Bowley: while Tom Bowley: uh pal is speaking, and then also, once he's done, how does the market react to this? I think that's going to be critical in the near term for the stock market, so we'll see again what happens there. Ten year treasury yield. So again this morning right now three point seven, six, six. Tom Bowley: So we are up about two basis points still below the twenty day, which is at three point eight, three, the fifty days at three point nine. Oh, and those recent highs are about three. Point nine, one, three, point nine, two. Tom Bowley: So that's really the area right in here that as long as the ten year treasury yield, stays at or below those levels that I just gave you, and continues to drift lower, goes back down and takes out this double bottom. Tom Bowley: I would expect money to rotate Tom Bowley: the more aggressive areas growth areas Tom Bowley: that Hasn't exactly been happening. I'm going to show you what i'm talking about. Uh, now. So Let's first take a look at the S. And P. Five hundred

Tom Bowley: uh and all. By the way, uh we did get the Adp employment report out this morning. Tom Bowley: It showed we were expecting two hundred thousand jobs, and it came in at one hundred and twenty seven thousand so positive, Tom Bowley: but less than expected, which I actually think is right about where i'd like to see non-form payrolls on Friday as well. Tom Bowley: Last month. We were two hundred and thirty-nine thousand on the adp employment report this month, expecting a drop to two hundred, and we actually came in at one hundred and twenty-seven. So I think that's a good thing. Tom Bowley: The Q. Three Gdp. However, which the first estimate team in it, two point uh six percent, Tom Bowley: and we're expecting this second estimate to be two point seven. It was two point nine, so it was a little hot hotter, a little hot, little higher than expected, so we had

Tom Bowley: the Adp employment report, which I thought was good news Tom Bowley: kind of what the Feds hoping for. But then the Gdp was higher than expected, which is a little opposite when the fed really Isn't. Uh, you know they want to kind of keep growth Tom Bowley: moderate or slow, not not accelerating. So Tom Bowley: both these reports I thought just kind of like the market little bifurcated, Tom Bowley: you know whether or not that carries over into anything that we need to be aware of in terms of the ten year Treasury yield. I don't know. Keep watching again. If we go back to that chart I would say three hundred and ninety-one three hundred and ninety-two. Tom Bowley: I can be okay up to about that level. But anything above that starts to look more like this as sideways consolidating, which would not be good for the growth. Stocks Tom Bowley: all right. So, anyway, here's your S. And P. Five hundred trending up above the twenty day, pulling back and testing the twenty day is no big deal. I don't worry about that. I look at what's going on beyond the surface of the market. It's like,

Tom Bowley: you know. Somebody washes their car and brings it up to you. It looks like a nice car. You know. It's been washed. Looks good on the outside, but you don't know how how it runs until you start the engine Tom Bowley: or try to start the engine, Tom Bowley: and that's kind of the market. When you look at the S. And P. Five hundred sometimes, you might like what you see, but you might not like what's going on underneath, you know, when you go to start the engine, and that's where we're having some difficulties right now. Not so. Let me show you what i'm talking about here. So this is a fifteen day, ten minute chart Tom Bowley: of the S. And P. Five hundred down below is the ten Year Treasury yield. Tom Bowley: Then we've got these ratios that I like to follow the Qqq. Versus the spider. That's just the Nasdaq, how it's performing, Performing versus the S. And P. Five hundred. The Xl. Y versus the Xlp. Which is discretionary versus Staples, and then the Iwf Iwd. Which is large cap growth versus large cap value. So just looking at these three

Tom Bowley: ratios along with the ten year treasury yield, and the S. And P. Five hundred. Let me show you what has transpired here since that October Cpi report came out right here, Tom Bowley: so we got that report. It was great news. It was great news on the inflation front. Tom Bowley: It was great news on, perhaps, what the Fed might do going forward. They want to see a series of these reports, but you can't have a series until you have the first one. So it was good to get that good news.

Tom Bowley: So, October. Excuse me. November tenth we gap up, and we continue going higher in the S. And P. Five hundred the ten Year Treasury yield. Of course, with that Tom Bowley: team inflation report drops, as we would expect. So the ten year treasury yield takes a big drop, and it continues going down the next several days. Well, Tom Bowley: these first four days were very bullish for equities, I mean. You can see. Not only was the S. And P. Going up, and interest rates coming down, but look at the relative strength here. The Q. Q. Out performing the Spider perfect, The Xl. Y. Jumping against the Xlp perfect. Tom Bowley: The Iwf going up versus the Iwd perfect all money is rotating into growth areas, Tom Bowley: but since then now I know the ten year Treasury yield for the most part has been flat little ups and little downs.

Tom Bowley: But if you look at the ratios, we're not getting any flat we're going down. We've been trending lower. When we get these little pops in the yield. You can see we're taking some pretty big hits in these relative ratios, and then we pull back. We get a little bit of a balance, and then, as soon as we start to show any strength again in the yield, Tom Bowley: immediately money starts rotating again out of growth areas. So we've given back a lot of what we what we gained. Tom Bowley: So the S. And P. Five hundred, which moved up, and we're still way above where we were back on November ninth. See that? I mean we're up over three thousand nine hundred, by the way, which is good, Tom Bowley: and we were down three thousand seven hundred and fifty, so we're up two hundred points on the S. And P. Five hundred, and with rate still way down, we've lost much of that Tom Bowley: uh rotation into growth. You can see the Qq. Spider. We're not all the way back down to where we were, but we're a lot closer than what the S. And P. Five hundred would would suggest.

Tom Bowley: And then, if you look at the excel xlp. And I know Tesla and Amazon, we're both having really really rough periods in through here, and they've started to bounce a little bit. But we went all the way back down essentially to where we were Before that inflation news came out, and before the ten Year Treasury you'll dropped Tom Bowley: fifty basis points. Tom Bowley: So you know i'm not there, you know I've got a couple of things going through. My mind One is obviously that this time of the year Tom Bowley: normally favors areas like the financials and the industrials more value-oriented areas. Tom Bowley: So part of this could be seasonal. Tom Bowley: Part of it could be the stock market just isn't nearly as smart as the bond market. The bond market is coming down.

Tom Bowley: Money should be rotating into growth eventually it will. It's just not yet. Tom Bowley: For the third Tom Bowley: that we have to consider is that potentially this could be a bearish signal. Tom Bowley: Now, Tom Bowley: you know i'm not. I'm not where I was back at the beginning of the year, and I've talked about this. I don't really want to spend a whole lot of time on it, but we've had um,

Tom Bowley: you know we've had plenty of signals. We had plenty of signals back at the beginning of the year that said we needed to be careful. Many of those signals are no longer a problem. Tom Bowley: So when i'm looking at this, remember these are secondary indicators. These are not primary indicators, Tom Bowley: so i'm not going to base my Tom Bowley: um.

Tom Bowley: You know my review, or base my opinion on the market on just these three ratios. But this is a part of the puzzle Tom Bowley: right now. It's a part of the puzzle that quite honestly doesn't make a lot of sense, Tom Bowley: because again, you know, when we're holding Tom Bowley: um. You know the recent support that November seventeenth low. If I pull up the Nasdaq one hundred on the same chart, Tom Bowley: see this low right here. Tom Bowley: We went slightly below it there, and we were both slightly below it again yesterday. So see how we're kind of rotating away from the Nasdaq, one hundred Tom Bowley: into the spider on a relative basis. Here's that same low.

Tom Bowley: This low never got down there. This low we keep putting in the higher lows here, and the lower lows on the Nasdaq one hundred again. I'm not sure exactly what it means. I don't know if it's a big warning sign, or if it's just something that will take care of itself over time. Tom Bowley: But with that having been said, there's nothing more important, Tom Bowley: then price volume that is our number. One Tom Bowley: Indicator: That's the primary indicator. When I talk about ratios being secondary indicators. What i'm looking for are for those indicators to support Tom Bowley: or dispute what I am seeing on the price chart of the major indices. Tom Bowley: So as I look at the Nasdaq one hundred, I'm. Still, okay. We did close, just slightly below the twenty. I'm going to shorten this chart so we can get a really good look Tom Bowley: at what's been happening.

Tom Bowley: But you can see on this three month chart. How we've closed just a little bit below that twenty day moving average. Tom Bowley: And if I use the inspector here, remember this was the open at eleven five hundred and twenty-one right there. Eleven thousand five hundred and twenty-one. Was that open? Tom Bowley: Here was the low of eleven thousand five hundred and three back on November twenty second. Tom Bowley: We closed yesterday. Eleven, five, zero, three, I mean. So we are. If we're not below these levels we are certainly on the verge of going below these levels and moving to about a two week low,

Tom Bowley: while the year yields are down Tom Bowley: again, at least makes you think a little bit here, right Tom Bowley: the other uh price point that I've talked about. And I think honestly, this is the level that we've got to really be watching. Tom Bowley: This is the gap up from that new information new fundamental information we had out on the October Cpi. We opened it eleven, three hundred and fifty. Tom Bowley: That's the top of a very significant gap Tom Bowley: with massive volume, Tom Bowley: Nasdaq One hundred, except for Quad Witching Day, Tom Bowley: which was back on the third Friday of September. This was the biggest volume

Tom Bowley: of the entire quarter Tom Bowley: last three months, Tom Bowley: and with that volume we gapped up, and we saw buying all day long, closing on the high the next day, still very heavy volume. Same thing that is a lot of accumulation coming from that eleven thousand three hundred and fifty level. Tom Bowley: Look at where the fifty day moving averages right now. Eleven, three, thirty, Tom Bowley: so you eleven, three, thirty, here, eleven, three hundred and fifty here losing the twenty day, and this price support barely. Tom Bowley: If we are weak Tom Bowley: today or over the next several days, Tom Bowley: and we go down into this area Tom Bowley: we need to hold. And, By the way, anything. If we set another new load today, I would be really careful in any juice or leveraged Etf on the Nasdaq. I like to play these. I like to be in on the le leverage side when we're trending higher, Tom Bowley: but if we start to break down I do not. Personally, I don't like holding any leverage.

Tom Bowley: If i'm going to be in the Nasdaq down to say this level, that's fine, but I don't need to be in the double or triple Tom Bowley: um etfs that track the Nasdaq one hundred, which will be the cute qld, which is two times, and then the t queue queue, which is three times, Tom Bowley: I think, when you're trending, you make a lot of money in those Tom Bowley: when you're not, and you start to move lower and start to lose some key support areas moving averages. That's where I would rather be much more cautious if I want to be in the Qq. That's fine, but i'd be careful with leverage when the market is no longer in an up trend, and I think that's starting to come into question Tom Bowley: right about now in the Nasdaq one here. We need to see a a rally here, Tom Bowley: all right earnings. We got about ten more minutes here, so let's take a look at some of the earnings because the earnings picked back up again last night we had a few Tom Bowley: names, especially among the growth in the growth area. Um, that maybe we're worth taking a look at, to see not only what they reported in terms of bottom line, but also how the market is reacting. Um this morning.

Tom Bowley: So let's start with into it Tom Bowley: into it. Had a great report in terms of bottom line. They were expected to post a dollar nineteen, and they posted a dollar sixty, six, Tom Bowley: but the ad line wasn't great. I was talking about this one on the show. I think it was yesterday. I just thought number one you're in software. Be careful. This is a really tough area. The ad line is not exactly flying higher. I just you know we're we're meandering lower in price. Tom Bowley: It was one of them that I was a little concerned with. I would never have held a stock like this into its earnings. Report. Tom Bowley: Um. Tom Bowley: And I think Tom Bowley: Yeah, Well, let's see what it was doing this morning. Tom Bowley: Okay, it's up a fraction up about one-third of one so it is up slightly. Um. But considering those numbers, Buck sixty-six versus buck nineteen,

Tom Bowley: and you get a dollar out of the price after losing six bucks yesterday, I don't know. It just seems like maybe uh pretty shallow type of reaction. Tom Bowley: Next up or day work Day had a great uh reaction expected to earn eighty-four cents. They came in at ninety-nine cents stock up almost ten percent Tom Bowley: uh in after hours with There you go nine minutes to go before the market opens trading up almost ten today, one hundred and fifty-seven and nine puts us up right about here. Tom Bowley: We got work to do. We got to close above about one hundred and sixty one Tom Bowley: before I would start to get more bullish to stock. So this is a situation where we might get a gap up, maybe we up and test. But if we can't close above this level short term, I wouldn't be surprised to see a pull back

Tom Bowley: crowd strike. Tom Bowley: This was not good Tom Bowley: crowd. Strike down to eighteen. Now they beat on their bottom line, and I also saw they beat on their top line, so beat on revenues, beat on earnings per share earnings per share came in at forty cents market, was expecting thirty-two. Tom Bowley: And you're like what? The heck Why is it down? Eighteen percent? Tom Bowley: They warned about revenues next quarter, Tom Bowley: said they were going to miss their previous guidance Tom Bowley: with revenues. Tom Bowley: Eighteen percent of the value of the company shaved off because they're going to miss their revenues next quarter Tom Bowley: seems a little steep to me.

Tom Bowley: But again, when you're looking at the price chart, I mean, look at what's been going on with crowd strike. It was two hundred and five back in August. Remember, we had that big run in August two hundred and five Tom Bowley: we were at. Well, now we're one hundred and thirteen, so we're almost cut in half in the last three months. Tom Bowley: It's brutal with these growth stocks when they're not working out. Well, now again, if you got good numbers and the market starts getting a better mood, and rates start to drop. We got a different ball game, Tom Bowley: but Tom Bowley: got power on deck. We're going to see what happens there.

Tom Bowley: A couple of other earnings. Let's see hpe Tom Bowley: hewlett-packard enterprise up two point four this morning. It's been moving up. This one actually looks pretty good on the chart. Tom Bowley: Um, I don't know if it can't break out above that sixteen level with its earnings. It's had such a huge run we could easily see a sell on news kind of thing here. So unless we get a lot of demand pouring in and a big breakout

Tom Bowley: and a close above sixteen. I would be careful because of the big run we've already seen. This could definitely be buy on room or sell on news. Hp: By the way, Matched expectations that drives you crazy, you know. You look at something like crowd strike which beat by eight cents. You're down eighteen percent, Tom Bowley: and then you get a stock like Hp. Which just simply matched expectations. And it's up to two point four, sometimes um, Tom Bowley: you know. And then that's part of the problem, too, I think. When a lot of folks look at companies based on their price earnings ratio, Tom Bowley: I mean, listen. I'm: a former practicing. Cpa. I love my fundamentals,

Tom Bowley: but I think, looking solely at the valuation of a company based on its pe is a big mistake, big big mistake, Tom Bowley: because Wall Street, you know, the big Wall Street firms are accumulating stocks based on their future potential. So if you're looking at Tom Bowley: a stock that maybe has a pe of twenty or fifteen, and you think that's high or low. You gotta be careful. First of all, if it's a trailing twelve months, I find it almost useless Tom Bowley: if it's the next twelve months that a little bit better. But still the market is looking at future growth of these companies, and if a company has A. P. Of two thousand and twenty-five based on next year's earnings and you think that's really high,

Tom Bowley: but this is a company that could grow their earnings by thirty, forty percent a year. Tom Bowley: I can promise you that multiples not high. Tom Bowley: So there's a lot that goes into it. It's not just the pe ratio. You got to be careful, all right. Network appliance also reported last night Tom Bowley: and down eleven percent not good. This is one that have been trending up over the last few months couple of months heading into its earnings report, but it's looking to open down around the sixty-three, sixty-four area all the way down here you can see very good support around sixty, one. So if it opens above sixty one, Tom Bowley: and then comes back down and test this area, Tom Bowley: I mean. You could certainly give it a shot near the support. But if that failed on a closing basis, I would be out of the stop what I would really like to see. When I look at something like this I like to see an intraday move below Tom Bowley: where it will trigger more stops, because nobody in their right mind, other than market makers would be buying a stock that starts to trigger stops if they want to accumulate chairs for an institutional client. That's a great way to do it.

Tom Bowley: You put in new lows for the last six months, and lot of folks have their stops there. If market makers need to accumulate chairs, that's a a really good place to do it and cheap. Tom Bowley: So if you go below these levels and then you bounce back up Tom Bowley: the close. It's a pretty good indication that market makers are buying, Tom Bowley: and if they're buying generally, I want to buy.

Tom Bowley: So, anyway, that's just one way that I look at the market sometimes. Um! Let's go ahead. We got a couple of minutes left Tom Bowley: the next three. What we'll do is we'll use these as a three, you must see. Uh, actually, i'll pull up for just see how they're they're doing. These are all companies that reported their earnings this morning. Tom Bowley: So Royal Bank of Canada up one and a quarter. Tom Bowley: I'm looking at the chart. There. It looks pretty good, Probably going to have a um negative divergence. I bet if it goes back up to a new high, maybe we'll look at that one um hormone Tom Bowley: uh down two and a half, so it's going to be back down. Looks like we below. The twenty day moving average is a pretty key area, though, of support, Tom Bowley: a lot of overhead resistance at about forty-seven before we broke out, and then we went down, held the twenty day, and went right back up again. So I think that forty-seven level would be really uh important. We'll look at that one. And then this is actually one of the Internet stocks that had been performing really well

Tom Bowley: on a relative basis, and it went up six percent with its earnings. Yesterday Tom Bowley: I was looking at. I was breaking down. I think this was yesterday's show over at stock charts. I was breaking down the communication Services group. We looked at Internet Internet stocks, Tom Bowley: and I showed everyone. If you pull up our strong earnings chart list at earnings beats how you can pull up in the search box. You can just pull up communication services, or even more specifically, Internet if you want,

Tom Bowley: and then it'll list all the companies on our strong earnings chart list Tom Bowley: in scooter order, which is a relative strength indicator in stock charts, and this was one of the stocks, one of the few Tom Bowley: communication services that had a scooter score above fifty. Tom Bowley: Most of this these stocks have been getting hammered to the downside, and they're relatively Tom Bowley: they. They have very, very poor relative charts. Tom Bowley: This one is a little bit different, and I pointed that out yesterday, and now they come out with earnings. They're up six percent with earnings. So, relative strength. All the things we do, it does matter. Tom Bowley: Um! We'll look at this chart just a second, and then the last one is Dci. So this is Donaldson. Uh, and they're up six, but also have moved up pretty good, I tell you what? Let's uh real quick. Let's look at these these three. Let's look at the Royal Bank of canada Tom Bowley: went back down hit that twenty day. Um at ninety-eight nice little hammer.

Tom Bowley: I think it's probably going to bounce and go back up to about one hundred and one one hundred and one, and change here, Tom Bowley: and if it does break out I would just be careful. Watch this Ppo. And make sure that Ppo goes up with it. If it doesn't, Tom Bowley: we could be, you know. Maybe we go up a little higher. But then the negative divergence could kick in and start to. Tom Bowley: We might see some selling pickup at that point Tom Bowley: all right. Next up.

Tom Bowley: Let's look at this. Tom Bowley: So again, Big six percent move with its earnings. There it is, gapping up a little bit. Actually, it's only gapping up a little less than six percent still moving to a new high. That's good um in the Tom Bowley: I believe this one's the Internet space. Let's pull up this on a relative chart.

Tom Bowley: Yeah, Internet. Internet going down. You can see it here relative to Internet it's near fifty two-week high. Tom Bowley: So it's a good stock within a really bad area, Tom Bowley: all right, And the last one I wanted to show you was this dci Tom Bowley: nice move, and it is uh moving up, trying to make that breakout above sixty, one, sixty, one, and a quarter. Tom Bowley: Until these last couple of days eighty lines been really nice. That's good relative strength moving to a new fifty-two week high versus industrial machinery peers. So it's a nice looking chart, and we're getting a nice reaction whether or not we can hold it on a breakout. We'll see. We'll know by later today, Tom Bowley: Anyhow, that's it for me. Let's see what the markets doing. See if it's down again, or if it's trying to bounce it's bouncing a little not much. Dow up forty-two S. And P. Up six Nasdaq up seventeen vix still twenty-two I mean, Mark, it's been struggling a little bit. They still hanging down there. I did mention, I think also yesterday

Tom Bowley: that if we see the Vix go below sixteen. Tom Bowley: We've yet We've not had a bear market where the Vix has been sixteen. Tom Bowley: Keep that in mind. Tom Bowley: That would be one of the sentiment signals that there is no more bear market Tom Bowley: right now. Still, in the twenties. That's about where we bounced in the past, right around twenty, maybe a little below that So this could be A. This is well, definitely, is a chance for the bears to try and regain some seven months of control here, especially on the Nasdaq. So we want to watch this throughout the day. Tom Bowley: All right. That's it for me. I'll be back uh tomorrow over at Stockcharts Tv. So you go in here, click on this stock charge Tv at nine Am. And you can check out my next trading places. Live show uh when I wish everybody a great day. Uh, and i'll be back tomorrow. Happy trading.

2022-12-07 01:36

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