Now That's What I Call a Good Chart
Amid a dearth of attractive chart setups, I'm watching this low-priced small-cap biotech closely.
You've reached your free article limit
You've read 0 of 1 free Pro articles.
The market is trading mixed with a negative bias on Tuesday morning following a hotter-than-expected Employment Cost Index reading of 1.2%. This is a report that the Fed looks at carefully and could have an impact on Fed Chair Jerome Powell's press conference on Wednesday afternoon at 2 p.m. ET.
Market players appear to be uncertain about Amazon's AMZN earnings report, which is due after the close Tuesday. The stock is trading down slightly and does not have a great technical setup at this point. If Amazon surprises like Alphabet (GOOGL) did, it will jump, but this earnings season has not produced many strong reactions to good reports. I have a position that I will reduce before the report tonight.
Overall, the action on my screens is uninteresting. There are quite a few stocks on my radar that will report their earnings results soon, but I'm generally more interested in buying them after the news than before.
While I do not see many good chart setups right now, that isn't a surprise, given that the indexes don't look so great either. I do like the improved action in small-cap stocks, but they can be hit hard if we have a poor reaction from the Fed Wednesday afternoon. I don't see much reason to be aggressive right now.
One small stock I am watching closely is ADMA Biologics ADMA. This chart looks good, but there is no set earnings date yet. The company will probably report around May 8. ADMA had a very good report on February 29, and I suspect that management has been conservative in its guidance.
This is what I consider to be a good chart:
At the time of publication, Rev Shark was long AMZN and ADMA.
