The Speculatooor
Good afternoon everyone! Big earnings are underway as we saw last night with Google and Tesla. A bit disappointing overall but not terrible nor was it enough to nudge the meter towards downside. Onwards we go, for now.
Google posted a beat with great numbers yet had a momentary relapse of CapEx fears. This can be seen with an initial decline in after hours trading before ultimately resolving higher and being green on the day. A beneficiary of higher CapEx was seen in Nvidia after hours as Google plans to spend more on AI, Chips, Data, etc.
As for the latter, Tesla, the numbers weren’t God awful, but the call with Elon was. Not only did he sound like he was, well you know - but he also claims that optimus is 5+ years away. A similar beat on the same drum we’ve had for years with Elon as he continuously pushes back his future product lines/projects. Not sure where the ball will ultimately land on this one but have to imagine there is a ton of upside potential in the longer scheme of things.
With that first wave of earnings behind us, let’s shift gears and see how the broader market currents are moving. Time to check in on the daily action for the indices.
SPY Daily
Having logged a new all time high, with an unrelenting uptrend extending through the summer, SPY currently sits well above key moving averages confirming strong momentum. Buying pressure continues to persist despite lighter volume + better overall breadth suggesting participation beyond the megacap assets. Outside of your moving averages acting as support, I’ve marked a few as well. Sentiment remains bullish yet it would not surprise me to see some profit-taking or some pullbacks along the way as we’ve had a tremendous rally from April lows.
QQQ Daily
Similar story here with the Q’s riding the 10 & 20D SMA’s nearly the entire way up. Tech continues to lead with thematic bids across Semiconductors, AI, & Cloud services. Support remains nearby and the upper STD range has been breached. Uptrend momentum is solid but falling volume with higher prices could signal short-term exhaustion. Brief consolidations / rotation would be beneficial here.
IWM Daily
Sitting just below resistance, the Russell 2000 has been a steady gainer from the previously noted inverse head & shoulders and 200D SMA reclaim. After underperforming for much of the year, it seems as though it finally joined the rally as of late. Option activity reflects increased positioning for continued upside while small-cap participation is an overall bullish signal for the broader market. With multiple bullish sweeps recorded, moves could become volatile as we await confirmation that this rotation has staying power and isn’t just a short squeeze or even short term reversal.
The major indices remain resilient with SPY and QQQ pushing to new highs and IWM catching up as market breadth improves. Upside remains favored.
Not bad for climbing a wall of worry innit?
Anyways, pretty solid basket today, let’s go ahead and dive into the flow for our subscribers + full session recap: