Earnings Clunker:
Earnings season was for the most part a strong affair within technology. Software was exceptional with the likes of DDOG DUOL SHOP and PLTR all up at least 20% after their reports. Most with the exception of DUOL are acting well after the move as Wednesday completed a bearish engulfing candle after Tuesday’s spinning top dropping more than 6%. It was the same scenario we saw before a 40-handle decline after the spinning top on 10/11 and the engulfing candle on 10/11. There were some big disappointments with TTD cratering 17% on 11/10 (to be fair it was making lower highs since the last day of July). Below is the chart of GOOGL which was an unexpectedly poor reaction declining almost 10% on 10/25. The stock rose just more than 1% Tuesday, with the Nasdaq up more than double that, and it CLOSED at lows for the daily range recording a bearish shooting star. On 10/12 Google registered a bearish dark cloud cover candle that was a near-term top. I am not saying this is a short here, but if it undercuts the 50-day SMA I think it can accelerate to the downside.