The Canadian Technician

Nasdaq Earnings Learnings - What you need to know..

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Today I want to present one chart.

This is the index for the top 100 stocks on the Nasdaq. The Ticker is the $NDX. Why does The Canadian Technician bother to plot the Nasdaq 100? Well, it tends to be a composite of some of the exceptional  stocks in Technology.

But the second reason is, how clear the pattern of earnings releases shows up on this chart. The boxed area is the pinnacle of the earnings announcements. The red vertical line is the Options Expiration date.

In the last 5 quarters, this market hasn't made any headway. It rallies into the earnings and sells off after the earnings. So when your feeling bullish and the earnings are winding down, do you need a strategy to control the decline of your account? You decide.


$NDX 20120110

Does this current rally look similar to the last 4? Absolutely! Now the question is, will it sell off after?

Let's enjoy the drive through earnings.

 

What I really did not like today was the action in the big Nasdaq stocks.

GOOG - underperformed the Nasdaq Composite today

AAPL - underperformed the Nasdaq Composite today

AMZN -underperformed the Nasdaq Composite today

MSFT - underperformed the Nasdaq Composite today

ORCL - underperformed the Nasdaq Composite today

CSCO - underperformed the Nasdaq Composite today

EBAY - Outperformed the Nasdaq Composite today

INTL - Outperformed the Nasdaq Composite today

The Disk Drive index looks weak, the Semi conductor index looks better.

If the market starts bidding up the Dow and not so much for the Nasdaq, I'll be looking for the exits.

Good Trading,

 

Greg Schnell, CMT

 

 

 

 

 

Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA). Learn More
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