Earnings Are Strong, But The Market Is Weak ⎯ Here’s What To Watch
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Big tech earnings have been better than expected, sending their stock prices higher. However, this has not been enough to take the rest of the market with it like previously expected. While these stocks look to be strong after their quarterly reporting, the rest of the market still looks fairly weak.
Given this weakness, we want to prepare for lower prices, should the market continue to pull back. This leads us to our ETF to watch today:
Direxion Daily S&P 500 Bear 3X Shares (SPXS)
Should the market continue to pull back, we can short positions on ETFs like SPY, or we can go long an inverse ETF such as SPXS. This allows us to stay in the game and off the sidelines and take advantage of a weak market.
As Amazon gets ready to report earnings today, it isn’t terribly unreasonable to think they too may come in with better-than-expected earnings results. However, as we have seen, it may not be enough to have the market change course. Keep an eye on some bearish plays on the overall market as the weakness continues.
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