So far this earnings season has confirmed what the market has long suspected and priced in - Big Tech, e-commerce, network infrastructure, and semiconductor stocks are thriving in the new COVID world. Now, the big question is, how many of those stellar earnings gaps in stocks that have already run 50% in the past few months are "sell the news" events and how many will just keep going higher? My suspicion is that we will get a little bit of both. Some of the gaps in popular stocks will be initially faded (see SHOP and AMZN after their best earnings ever) but the pullbacks in those same names to their 20 and 50-day moving averages will continue to get bought. Some of the old leaders will continue to lead (FB, AAPL). There will be quite a few new leaders emerging out of this earnings season.
The market continues to provide incredible trading opportunities on a daily basis. Here are just a few of the ideas and comments I shared with subscribers last week: