Mish’s Daily: Two Stocks Setting Up & Reporting Earnings This Week

6 days ago 72 views 4 min read

Michele “Mish” Schneider

Director of Trading and Education

MarketGauge.com

Mish’s Daily: Two Stocks Setting Up & Reporting Earnings This Week

Written by Michele ‘Mish’ Schneider

Coming into today, the Russell 2000 IWM (Gramps) was at a key life support level on the 200-week moving average. 200 is the level, which right now looks threatened.

Grandma Retail XRT was intubated and still is, especially under 70.00

Biotechnology is still ok. In fact, I am keen on this sector.

Sister Semiconductors SMH looks like she wants to visit 200.

Transportation IYT, which we found hopeful, closed under support levels.

So, is there anything worth looking at right now?

As this is Technical Monday:

Adobe, INC ADBE reports Wednesday March 12^th.

Ulta Beauty ULTA reports Thursday March 13^th.

I have been watching both carefully as both are outperforming the benchmark, if you look at the leadership indicator.

Adobe is best known for graphic design, photo and video editing, and document management.

Ulta Beauty is best known for being a one-stop beauty retailer.

Besides outperforming the SPY, real motion shows momentum is okay.

Adobe momentum sits on the 50-DMA (blue).

Ulta momentum shows a bullish divergence as the red dots are above the 200-DMA (green) while the price is below the 200-DMA.

What are we watching for?

First, in the current environment, waiting for the earnings reports makes sense.

Then, I would pay attention to forward guidance given talk of recession or stagflation.

Third, I would wait for:

A. ULTA to hold over $375 as that would look like a potential double bottom going back to November’s low.

B. I would like Adobe to return over $450 the January calendar range high.

Educational purposes only, not official trading advice.

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