Nasdaq Fights Back After 1.3% Intraday Drop; JD.com, Yalla Top Buy Points

TL;DR

The stock market experienced a volatile session, with the NASDAQ closing higher but showing signs of stalling. Microsoft, JD.com, and Yala are discussed as potential investment opportunities ahead of busy tech earnings week.

Transcript

good afternoon and happy monday everyone it's also coram and ken shreve here with a look at the stock market today on today's show we're gonna break down the sort of whiplash session that we had today ken we're also going to take a look at three interesting names under the surface what do you have for us today well we're going to take a look at mic... Read More

Key Insights

• ❓ The NASDAQ's whiplash session and potential stalling indicate market caution.
• 👣 Microsoft's upcoming earnings report presents an opportunity for call options, considering its track record and technical setup.
• 👾 JD.com stands out as a solid institutional-quality stock in the Chinese tech space, with a potential handle forming.
• ❓ Yala's breakout should be approached with caution due to recent market euphoria and its speculative nature.
• 🤘 The market overall shows warning signs, but individual investors can still consider nibbling on attractive setups.
• 🧑‍💻 Tech earnings week, including Microsoft, Apple, and Tesla, is expected to have a significant impact on the market.
• ❓ The importance of profit cushion and managing portfolios in an overheated market is emphasized.

Questions & Answers

Q: Why did the NASDAQ experience heavy losses in the middle of the session?

The NASDAQ's outside day trading pattern showed that even with a significant morning selloff, the index managed to close higher. However, the heavy volume without significant price progress indicates potential stalling in the market.

Q: Should investors consider buying Microsoft stock ahead of its earnings report?

It is recommended to consider call options instead of buying the stock outright. Microsoft has a solid track record in cloud computing and recent quarters have shown double-digit sales growth. However, waiting for the earnings report's reaction is advisable to have a profit cushion.

Q: Is JD.com a good investment in the Chinese tech space?

JD.com is considered a strong institutional-quality stock with a good track record of execution. Its relative strength line and rating outperform Microsoft's, and it is showing a potential handle forming, indicating a shorter consolidation.

Q: What are the cautionary points to consider for Yala as a potential investment?

While Yala experienced a significant breakout, the number of stocks seeing big double-digit moves in recent days could indicate euphoria and potentially signal a market top. Yala is a small-cap stock, so caution is advised. However, it has strong sales growth, profitability, and good underwriter pedigree.

Summary & Key Takeaways

• The NASDAQ had a whiplash session, with heavy losses in the middle of the day but ultimately closing higher. This indicates potential stalling in the market.

• Microsoft is analyzed as it prepares to report earnings, with a suggestion to consider call options rather than buying the stock outright.

• JD.com is highlighted as a strong institutional-quality stock in the Chinese tech space, with a potential handle forming above its 50-day moving average.

• Yala, a small-cap stock, experienced a significant breakout, but caution is advised due to its speculative nature.