The Nasdaq is in the midst of a fantastic move off of the October lows, states Danielle Shay of Fivestartrader.com.
It’s broken through quite a bit of resistance, which means the likelihood of the move continuing is better than not. What is great about this move is that as the market has exploded higher the put/call ratio only initially dipped a bit, but then reversed and continued higher! This means that traders are shorting into the rally, which, of course, can propel it even higher if and when they are proven wrong.
The Microsoft Signal
I see a few reasons it may continue, one of them being Microsoft (MSFT), which is almost at a new, all-time high! It’s typically for MSFT to rally post-earnings, but the move was a little funky this quarter since it gapped up post-earnings, pulled back, and then took off. I prefer a breakaway gap just because this is a robust and bullish signal, but I’ll take it! It did have a daily squeeze.
Microsoft is so close to kissing that new, all-time high. That’s my target and after that? It depends on whether the momentum continues or not. Either way, of course, I am still holding my stock. I’d bet on a move up to $375 on this break, though.
Pre-Earnings Momentum
When the Nasdaq is strong, and stocks like Microsoft are rallying post-earnings, that means we can continue to look for pre-earnings momentum setups. It may seem like earnings season is wrapping up, but, there are still plenty of tickers coming! Check out my watchlist below, along with the top tickers that have had the biggest pre-earnings moves over the last year:
Tickers on my list include Broadcom (AVGO), MongoDB (MDB), Crowdstrike (CRWD), Zscaler (ZS), and more. Check out this gorgeous chart pattern on the Broadcom daily chart:
Look at that daily squeeze, positive pre-earnings average, entrance into the Hot Zone, and more. Which stocks do you like for pre-earnings runs?
Learn more about Danielle Shay at Fivestartrader.com.
