Tackle Today Stocks in the News - BA / PDD / SEDGE

Matt and Mark Justice the Justice Brothers starting off a week today tackle today we're seeing some relative outperformance in small caps RSP Tech selling off a little bit ahead into VI's earnings we're going to break down all the charts talk about durable goods orders look at the commodity charts we're going to break it all down for you today Matt give us some technical charts to start the week uh we are seeing that relative strength in the in the average stock out there aren't we yeah a little bit here to today not uh nothing too dramatic uh as we start uh start the market off here on a Monday morning but we are seeing a little bit of uh profit taking and pattern development uh in the spiders themselves little bit of overextended type situation as you're coming into overhead resistance you saw the consolidation take place last week and now it's simply continuing this week pattern development can take a little bit of time and you do not get a pick out when the market wants to break out you just get to identify the level and wait on the pattern to actually come to uh some degree of Confirmation and so right now we're dealing with a little bit of uh what I would describe as slowing momentum developing into a high base type technical pattern right at overhead resistance which also equates to the alltime high in the market so the story kind of writes itself this week slightly overextended need a little bit of development here and waiting on a breakout yeah and while we're waiting for that uh as we look at a lot of stocks I'm seeing a lot of bullish signals on a lot of individual stocks and it's not not a surprise when you see the continuation of the breakout of RSP right yeah yeah Gap up hold the Gap here hasn't run away from anything but you are a little bit overextended on RSP and the the time frame on RSP and in RSP when RSP is looking better than the Spy you're you're talking cyclical and you're talking defensive when spy is looking better than RSP you're talking uh an aggressive technology driven type of rotation so right now we're dealing with the breakout I think the number one time frame on the indexes is when you're looking at the weekly chart on RSP real good breakout last week and obviously seen a little bit of continuation uh I was asked a question by one of our uh traders in our community over the weekend and basically my thought was listen uh based on the the the environment the technical analysis nvidia's earnings report coming up it's cyclical and defensive early in the week and it's uh depending on what Nvidia does it's technology at the end of the week yeah I know all eyes are going to be on Nidia Wednesday after the market close we'll continue to talk about that as we get closer to it but Matt uh you know there's not a lot to do with one of the most popular stocks on the planet as we head into earnings is there uh no no this one uh Nvidia I don't want to say Nvidia is the market but the market is going to take uh its que from Nvidia this week there's no doubt about that it's the it's the Kingpin in the AI soag it's the number one semiconductor out there it's a Max 7 component it's one of the biggest companies in the entire world and I would say right now it's the most important company to the market and the trajectory of the market so um when you when you got something like that in front of you and that and that's only two days from now um and you're dealing with a little bit of overextension a little bit of pattern development and a little bit of uh uh underperformance uh in uh in the NASDAQ itself a lot of that in my estimation is due to Nvidia uh when you look at the q's technical pattern it hasn't recovered as much as the Spy has and it hasn't recovered as much as uh the the cyclical areas of the market has but it also sold uh a little bit more aggressively when you're looking at the recovery here pounding off that 200 day moving average all the way up above that 50 period moving average and now you're looking at a little bit of of development there well let's let's take a look at Nvidia here a little bit of the exact same Saga here the high base forming underneath the Pivot Point uh kissing up above the uh above the 50 period moving average and so uh Nvidia if you if you think technology is a market and and technolog taking their cues from Nvidia then obviously nvda is uh is the name of the game this week when it comes to those aggressive asset classes and specifically the uh Tech area yeah I find a lot of Dealers Choice in this market our Traders report and our Traders Lounge that we hold hold every day we're going to help Traders find those areas a lot of bullish signals out there even in a weak Market Matt uh we talked in the trading Justice podcast over the weekend that the debate moving forward after the pal pivot on Friday the debate moving forward is going to be on the health of the economy you shared some amazing stats in the newsletter we discussed them in the podcast that after the pivot once the rate cut cycle occurs that the economy how the economy does is the deciding factor whether markets are strong or whether they're weak and so that's important because it becomes a a good news is good news for for economic reports and bad news is bad news for economic you know and so individual traders who maybe tune out the economic side uh during stretch this is one of the stretches in the coming months where you're not going to want to do that now we're going to have economic data almost every day today we had durable goods now durable goods had a big bump up but one of the reasons it had such a large bump up is because of the Boeing Factor last month Boeing had some tremendous problems with orders that brought it down they kind of skewed it on you know kind of more dramatically this month and so durable goods it looks like a huge massive number but there's a huge Boeing effect here at play core durable goods slight decline overall Matt might take on the economic numbers did very little to change the economic narrative uh and that's what we're going to be on the look for data points that change the narrative right we're going to have a lot of noise on a day-to-day basis what are the reports that change the narrative and that's what we're going to be on the look for not a lot to see here in my opinion this morning Matt yeah and uh uh not exactly a major economic report is durable goods but good context on that Boeing no doubt about that uh a slightly uh better expect uh better than expected number on a minor economic report uh I would say the uh bigger economic data is coming at uh later on in the week here uh I would say the exact same thing for stocks in the news here yeah I mean I mean not to disparage the three stocks you had but not exactly murderers roll from the 27 Yankees is it no no it's not Nvidia apple and Amazon here today no no no it is not it's a it's a little bit of a lazy Monday morning in the market here when you got teemu's parent company uh being the number one company to discuss here as they do beat on earnings uh earnings analysis on the EPS side of the equation they also did beat expectations on the revenue side of the equation but they did it the the problem for timu and and specifically PD PDD was twofold number one the market doesn't really have an appetite for Chinese stocks right now uh even average reports are being sold fairly aggressively and and second of all they did not provide guidance but the CEO did talk not exactly glowing about the uh the economic environment moving into the into the future in fact talked a lot about the headwinds and I would take that as a drop in guidance and and dropping guidance would typically send that stock tumbling as well so you you you put on top of that there's not a lot of thirst for Chinese companies and then you have just uh a weak guidance uh situation coming out of teemu's parent company PDD uh Chinese stocks continue to sell in PDD as one of the uh is selling fairly aggressive ly here today you mentioned Boeing Boeing was in the news all over the weekend as they they their astronauts that are stranded in space you actually have Elon Musk and SpaceX going up to save the day literally save the day this could be uh this could be a movie coming out of Hollywood uh regarding what's happening with Boeing and if it was a movie in Hollywood you would look to short Boeing that is terrible terrible for Boeing and awesome for Elon and doing what is needed to get those two astronauts home uh and then solar Edge Technologies uh they uh they did rise initially 6% but showing a little bit of selling pressure here today as their CEO is stepping down and they are immediately replacing them from a technical perspective when you're looking at these three stocks uh you see the big sell off on teemu's parent company you look at that selling Behavior here and that does not look like it wants to stop on the Boeing front Boeing just keeps on getting in front of itself it's trying to reverse it's trying to do good things then you have the earnings report you hold support you start to fight back up with the market then you have the the unfortunate news on the astronauts I mean it just they just cannot get out from under themselves and then on the solar Edge uh just a stock that's been on our Traders report on the bare side of the equation a tremendous amount over the course of the last year Coach Frank has loved this stock on the bearish side for a long time it has been a Delta dog beish oh it's it's been uh it's been a great performer on the downside for the Delta dogs there's no doubt um but uh trying a little bit of reversal uh here after uh what I would describe a negative earnings report but trying to reverse anyways uh to me I think there's better solar opportunities than sge in the marketplace that's all we got for stocks in the news today though yeah listen in the commodity World oil is getting the biggest move uh lot of headlines coming out of the Middle East this week uh where there was attack uh between Hezbollah and Israel it's carrying a lot of uh headlines now regardless Matt I have liked oil I've talked about oil recently now there's nothing I can do now this feels like short squeeze territory now uh but Matt like I want to highlight the little time period that we had in June so in June we had a move up and then we formed a high base right a high base in the middle of a p pattern right a little tricky but you saw you know basically it hold it just take a few days off and then it provided the ne next leg up that's kind of what you would have to look as an oil bowl or an energy Bowl uh some kind of pattern similar in this situation yeah I think yeah I think that would definitely go a long way but even if you got that you still got overhead and chop and volatility and and and concern on the directional side of the equation and so it it needs to uh simmer down cool down and give us a little bit of pattern development that is not based on vshape up and down yeah if I see that pattern then there are XLE oriented plays that I'm interested in now gold plays uh as we uh very technically well behaved uh on gold right now pretty clear like for me gold is not as much a technical area as it is a fundamental area but man that's pretty dialed in right now on a breakout level isn't it yeah it is you can look at it from a technical or fundamental obviously the fundamental side kind of paints itself we talked quite a bit of that going into uh uh the newsletter and then obviously talked about that in the trading Justice podcast uh in terms of the analysis of what happens to the market and gold going into a cutting cycle well gold does pretty good quite frankly five out of the last six cutting Cycles gold did really uh good to great in my opinion and and you're you're looking at a really good technical pattern on top of that and so whether you want to look at this from a fundament perspective or a technical perspective gold looks really good in its development right now uh on the on the cyclical side of the commodity silver looking to uh break that 30 level 30 is that overhead resistance that we've been dialing in Copper at that 42 level trying to get above 42 but the 50 period moving average is right there on top of it so that's going to stop some of the directional side of the equation but good reversal analysis in the cyclical commodity uh commodity side uh as well uh listen come join our community tackling.com sign up for a 15-day free trial we have extended conversations we go hunting for individual stock plays we answer questions it's an amazing community and you can check out that newsletter tacktrader for that trial today