MARKET OUTLOOK - JANUARY 22nd SPY, AAPL, GS, BAC, TLSA

MARKET OUTLOOK - JANUARY 22nd

SPY

SPY continued higher Friday confirming my thesis that shorts are continuing to get squeezed. Jan. 3rd was very key for trapping shorts. If futures remain down tomorrow morning and we open down I will watch for similar action. I still think that we have some room to squeeze. I am looking for the point where Bulls get tempted, I want to see the emotional buying where they start to feel left out. With that in mind, I think we are getting closer and closer to that time.

GS & BAC

Both of these reported good earnings and exploded. GS, in particular, got annihilated in the recent market sell-off. Since the numbers, GS has rebounded nearly 25% from the lows. While I think it is possible to squeeze some more I am starting to think those stuck long may want to take some risk off soon. BAC is quite the tricky one, very hard to time with my experience the best time to buy this is when it looks the worst. I have the same thought process here as GS but will be careful with this name.

AAPL

I am still not very impressed with this bounce in AAPL. I still think that we see a continuation of weakness here. If this market turns and we start to sell I am very curious how AAPL reacts. It is a tricky one to trade as well, especially with headline risk looming. I still think it is worth the risk, and those that were looking for a bounce have yet to get it.

TSLA

What a stock huh? I say trade this one at your own risk... headlines will destroy you. With that being said you saw a lot of longs panicking Friday. This one will provide ample opportunities on both sides of the tape as people reposition and figure out what they want to do. This will be a fun one to watch for sure.

As always this is not financial advice, and should not be treated as such. I write my thoughts to help keep myself accountable and sort through them. If you have ideas feel free to leave comments I am always willing to look at other perspectives!