- April 19, 2023
- Posted by: Noureldeen Al Hammoury
During yesterday’s trading session, we closed 90% of our long trade on the S&P500 which was issued last week from 4093 with over 75 points in profit. In addition, it was wise to trim our risk in Amazon and close 50% of our long position from 99.30 during the premarket hours at 102.74, while we will keep the options contracts unchanged until after the earnings report which will be released in a few days.
New Long Trades
During Yesterday’s session, we issued new long positions on AUDUSD and NZDUSD at 0.6733 and 0.6215 respectively. Both pairs are trading near a 26-degree angle on the daily chart from the October lows of last year. We will keep these trades without a stop loss for the next few days at least until Friday and will monitor the price action in the coming hours before deciding on our hard stop loss orders.
Earnings Are Not As Bad
So far, the earnings season for the banking sector is not as bad as the street thought. All the banks that reported earnings so far came in better than expected, except Goldman Sachs, which posted a better-than-expected EPS, but the revenue came short of expectations, which still decrease the fears of the impact of SVB and Signature bankruptcies, at least on the short term.
Netflix Record Net Cash Flow
Beginning with Netflix, EPS came at 2.88 vs. the 2.86 estimated, while the revenue came in slightly less than expected at $8.16B vs. the $8.17B estimated. The most interesting development in last quarter’s earnings is that the net cash flow has doubled to $2.1B compared with $0.8B in the last quarter. They also mentioned that they are on track to achieve 2023 objectives.
Netflix stock declined initially by over 12% but managed to recover quickly and closed the after-hours session slightly higher. With such outcomes, Netflix’s technical outlook is becoming more bullish, while the price/time method suggests longs with a stop under $328.
Will Issue the trade in the coming hours
UK’s Inflation Remains Sticky
The UK inflation data were released ahead of the European session opening bell today. The entire data showed that inflation pressure is here to stay and that the core inflation is sticky. The only number that slowed down was the Core PPI, which eased back to 8.5% from 10.2%. Such data fuels the expectations that the Bank of England will be forced to do more in the coming meeting. So far we don’t have any trades on GBP following the recent rally. It needs a notable retracement first.
Gold managed to recover over $2000 yesterday and closed the day well above that resistance. However, it is currently trading below that level ahead of Europe’s opening bell. If you have any trades on Gold, keep an eye on $1993 in the coming hours, as a breakthrough that support would clear the way for a deeper retracement, possibly towards 1985 followed by 1980. Manage your risk.