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The SPY and QQQ are likely to stabilise for now, but market rotation might not be over yet. In the context of a mixed earnings season, we’re cautious about taking pre-earnings trades this time. Any pre-earnings trades should only be made in real time conditional on a breakout. Quality setups continue to be scarce, which tells its own story, but this market reset will soon bring more of the excellent opportunities we prefer. As ever, breakouts are always part of our trade plan philosophy. Here are four stocks to keep on your radar this week:
WiseTraders Weekly Watchlist – July 29, 2024 to August 02, 2024
COST (bearish) – While it might whip around current levels for a while, if it stays below its 50-dma with a negative OVI, then it’s likely to slide further. The chances of hitting new highs any time soon are remote.
GE (bullish) – A powerhouse that has responded well to earnings after a multi-month consolidation.
MOS (bullish) – Precision timing is the challenge here, but bullish Shrinking Retracements are in evidence here, along with a positive OVI and other bullish Big Money Money Footprints. It needs to stay above its 50-dma and get past earnings, but keep an eye on this in the meantime.
NFLX (bearish) – It’s always tough to view a powerhouse like Netflix as a bearish candidate, but even juggernauts retrace, and this could yet retrace some more. Be mindful of whipsaw action, but if new recent lows are achieved, then there should be more to follow.
