2023 Mega Cap Stock Reversals!
I just wanted to give a quick "state of the market post" update for 2023. We're one month into the new year and we've seen some very surprising action in the market, a stark contrast from last year at this time!
So, what have I been watching?
One name I was watching going into the new year was $TSLA. $TSLA had a very strong 2020 through 2021 run in the market. It opened 2020 at $28.30 and closed 2021 out at $352.26 making a +1145% run in just 2 short trading years.
2022 painted a much different picture though, opening at $382.58 and closing the year at $123.18. Losing ~68% of its total value from opening to closing price of 2022. Completely erasing 2021s move and taking out nearly half of 2020s move on top of that!
Since the stock made such a dramatic move down I started to watch it closely. My eyes were on the $100 price point. I thought this may be a spot for traders and big funds to step up and "find value" in $TSLA once again!
Here are a series of tweets I shared with AoT members. We followed this move closely around this time!
for the sake of round numbers $TSLA has made a near 78% move off of 2023 low! Many Art of Trading members were able to benefit from this idea!
$TSLA hasn't been only mega cap name to make a huge reversal off of lows! $NVDA, $AMZN and $NFLX have made incredible moves to start the new year off, too!
Here is a 2023 market map showing YTD moves in some of the biggest players:
$TSLA being one of the most impressive but $NVDA, $AMZN, $NFLX, $META, and $MU have put in some work too!
So, where does the market stand today?
Obviously its a little early to be calling for a new bull market, a bottom or any of that. I wouldn't recommend trying to do that anyway. We can follow the price on the charts and look at what has changed though!
$SPY Daily time frame:
Made a major low in June of 2022
Tested and made a NEW major low in October 2022
Created a higher low that held in December 2022
Traded back above and HELD the 200 MA
Made a move above the down trendline from January 2022 for the first time in 1 year!
$SPY has made major progress that can not go un-noticed. We will need more time to see how this develops further!
$NASDAQ has done much of the same! Last week it traded back above and held its 200 MA for the first time since last March! The market is definitely making progress in a positive manner!
With this we've seen Power Earning Gap trade ideas come back with strength! $NFLX and $TSLA have made big moves out of their recent earning reports! I'm sure we will see some great trade ideas out of the Power Earnings Gap list this year! As an AoT member you can get these alerts in real time!
Watch $AMD, $META, $AMZN, $AAPL and $GOOGL next week for their earnings reports!