Wicked Games

Ahhhh, the beauty, cruelty, anguish and wickedness of the stockmarket.

Don’t ya just love it?

I was comfortable acquiring Netflix stock a couple days ago.

And then, Netflix stock rose 11% in today’s trading and its up 20% from its intra-day low only 4 days ago.

Just think about that. Cash earns you 1% for the year.

Netflix is up 11% in a day.

And so the conundrum’s continue.

Tomorrow we’ll see those who are buying, because they are missing out.

Others may see it as a second chance to sell, if they got spooked by January’s decline.

Or what about the buyers in the last 2 days who are salivating over (or nervous about) a 11%-15% return, in such quick time. Keeping in mind, there tax to pay.

And then those who bought at today’s high of $427 prices will watch the stock fall 9% as it ‘backs and fills the ‘gap’ in the stock chart to $387.

Stocks often move to where they can do the most damage and much of it is psychological.

February 1, 2022

by Rob Zdravevski

rob@karriasset.com.au

Google’s earnings are a bellwether

If you had to watch only one stock this earnings season, I think it should be Alphabet.

I remember when Cisco Systems was the quarterly earnings bellwether?

They (Google) report earnings on February 1st, 2022.

To coincide with today’s post about picking a bottom in the Nasdaq, in order to keep its current bullish trend intact, GOOGL needs to hold the support line on the chart below, which is around the $2,450 mark.

In other news, Microsoft reported earnings after today’s close and we’ll see how their price action plays out, while Apple reports earnings on January 27th.

All three of these stocks are on or above similar support lines. (MSFT’s is right on the edge).

Meanwhile, the other three of the “FAANGM’s gang, being Netflix, Amazon and Facebook have already broken below their corresponding (or sympathetic) support lines.

Incidentally, Tesla reports quarterly earning on January 26th (U.S. time) and their stock will be interesting to watch too. Not because I consider them anywhere near a bellwether, but rather they are a proxy for cult and sentiment.

To put it simply, if Alphabet (Google) breaks below that support line on a weekly closing basis, then they may be the last straw that broke the camel’s back……….

thus my the probability of my Nasdaq low story is de-bunked and I’ll revise the next wave and targets at lower levels.

January 26, 2022

by Rob Zdravevski

rob@karriasset.com.au

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