We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Analyst Blog Highlights CrowdStrike, Splunk, SoFi, ACM Research and Twilio
Read MoreHide Full Article
For Immediate Release
Chicago, IL – February 9, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: CrowdStrike (CRWD - Free Report) , Splunk , SoFi (SOFI - Free Report) , ACM Research (ACMR - Free Report) and Twilio (TWLO - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
A Technical Breakdown Ahead of January's CPI Reading
The S&P 500 has been range-bound between 4450 and 4590 (oscillating around 4500) since it broke out of correction territory at the end of January, as market participants sit on their hands and await the next meaningful macro catalyst. Thursday's (2/10) inflation figure looks to be the next on the docket of market-moving economic reports, which will reveal the magnitude and focus of Omicron's inflationary impact.
Volumes have been gradually declining since February began as nervous investors set their expectations for the flood of quarterly reports that are hitting the wire before and after each trading day. Following a red hot January jobs report, the January CPI report and its monetary implications will be the primary market focus of this week's index level action.
This inflationary indicator should further tighten the credit market's expectations (5 to 6 Fed Fund hikes in 2022) and hopefully provide an information-relief rally across the most inhibited rate-sensitive spaces of the market (assuming CPI data doesn't illustrate anything wildly unexpected). Expectations vs. reality is what to focus on, not fear-mongering headlines, which I can almost guarantee we'll see no matter what the result.
Technical Breakdown
Fear, uncertainty, and doubt (FUD) surrounding inflation, monetary policy, and their combined implication on sustained demand have held the S&P 500 in a technically-bound trading range.
When employing macro technical analysis on the US stock market, it's prudent to do so with S&P 500 futures instead of the spot index due to its 24-hour trading (Sunday evening thru Friday afternoon), making it the preferred US equity trading tool for global professionals. In other words, it's the industry standard for stock market chartists.
Something to remember while reading: Fibonacci extension levels (price targets to the downside) shown above represent entry points, while Fibonacci retracement levels (price targets to the upside) provide technical exit targets.
Last Monday (1/31) began with a tech-fueled breakout to conclude January's exceptionally volatile trade on a note of optimism, driving the S&P 500 comfortably away from correction territory (-10% decline threshold) and back above its 200-day moving average (blue circle).
The week saw its peak around Wednesday's (2/2) closing bell (red circle) into Meta's post-earnings meltdown that carried the whole market with it. Amazon's (AMZN) unexpected earnings blowout, along with scorching hot January jobs report, put a Band-Aid on this hemorrhaging Friday morning.
Fickle price action is kicking us off in this second week of February trading. With a slew of earnings across sectors being released throughout the week and January's yield-driving CPI report Thursday morning, we are poised for another crazy week of market action.
The most important S&P 500 (futures) technical levels to watch amid this week's likely volatility will be the 200-day MA to the downside, which sits just above 4450. A break below this could mean the market is headed back into correction territory or, worse yet, towards a bear market (-20% decline from recent highs).
A breach of the 50-day MA at 4620 will be the bullish breakout signal to watch for if this week's data comes in favorably. First, we'll need a catalytic push above last week's fib-bound high around 4590. This catalyst could come in a data relief rally following January's CPI release Thursday morning.
I'm looking to buy growth prior to this reading as this data will likely lift the FUD-pressures surround next generation innovators.
Stocks I'm buying into the print: CrowdStrike, Splunk, SoFi, ACM Research and Twilio.
Happy Trading!
Dan Laboe
Zacks Strategist
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Zacks Analyst Blog Highlights CrowdStrike, Splunk, SoFi, ACM Research and Twilio
For Immediate Release
Chicago, IL – February 9, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: CrowdStrike (CRWD - Free Report) , Splunk , SoFi (SOFI - Free Report) , ACM Research (ACMR - Free Report) and Twilio (TWLO - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
A Technical Breakdown Ahead of January's CPI Reading
The S&P 500 has been range-bound between 4450 and 4590 (oscillating around 4500) since it broke out of correction territory at the end of January, as market participants sit on their hands and await the next meaningful macro catalyst. Thursday's (2/10) inflation figure looks to be the next on the docket of market-moving economic reports, which will reveal the magnitude and focus of Omicron's inflationary impact.
Volumes have been gradually declining since February began as nervous investors set their expectations for the flood of quarterly reports that are hitting the wire before and after each trading day. Following a red hot January jobs report, the January CPI report and its monetary implications will be the primary market focus of this week's index level action.
This inflationary indicator should further tighten the credit market's expectations (5 to 6 Fed Fund hikes in 2022) and hopefully provide an information-relief rally across the most inhibited rate-sensitive spaces of the market (assuming CPI data doesn't illustrate anything wildly unexpected). Expectations vs. reality is what to focus on, not fear-mongering headlines, which I can almost guarantee we'll see no matter what the result.
Technical Breakdown
Fear, uncertainty, and doubt (FUD) surrounding inflation, monetary policy, and their combined implication on sustained demand have held the S&P 500 in a technically-bound trading range.
When employing macro technical analysis on the US stock market, it's prudent to do so with S&P 500 futures instead of the spot index due to its 24-hour trading (Sunday evening thru Friday afternoon), making it the preferred US equity trading tool for global professionals. In other words, it's the industry standard for stock market chartists.
Something to remember while reading: Fibonacci extension levels (price targets to the downside) shown above represent entry points, while Fibonacci retracement levels (price targets to the upside) provide technical exit targets.
Last Monday (1/31) began with a tech-fueled breakout to conclude January's exceptionally volatile trade on a note of optimism, driving the S&P 500 comfortably away from correction territory (-10% decline threshold) and back above its 200-day moving average (blue circle).
The week saw its peak around Wednesday's (2/2) closing bell (red circle) into Meta's post-earnings meltdown that carried the whole market with it. Amazon's (AMZN) unexpected earnings blowout, along with scorching hot January jobs report, put a Band-Aid on this hemorrhaging Friday morning.
Fickle price action is kicking us off in this second week of February trading. With a slew of earnings across sectors being released throughout the week and January's yield-driving CPI report Thursday morning, we are poised for another crazy week of market action.
The most important S&P 500 (futures) technical levels to watch amid this week's likely volatility will be the 200-day MA to the downside, which sits just above 4450. A break below this could mean the market is headed back into correction territory or, worse yet, towards a bear market (-20% decline from recent highs).
A breach of the 50-day MA at 4620 will be the bullish breakout signal to watch for if this week's data comes in favorably. First, we'll need a catalytic push above last week's fib-bound high around 4590. This catalyst could come in a data relief rally following January's CPI release Thursday morning.
I'm looking to buy growth prior to this reading as this data will likely lift the FUD-pressures surround next generation innovators.
Stocks I'm buying into the print: CrowdStrike, Splunk, SoFi, ACM Research and Twilio.
Happy Trading!
Dan Laboe
Zacks Strategist
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.