U.S. equities are wrapping up the primary quarter in grand model. The QQQ, which tracks the NASDAQ 100, is zeroing in on a 20% achieve for the quarter, as I write this. We noticed an enormous rally in January 2023 and robust Januarys often recommend a robust 12 months forward. Based mostly on our Q1 efficiency, it would be arduous to argue at this level. There’s extra technical work forward, which is to be anticipated after the completion of a cyclical bear market. If you happen to observe the “20% rule”, then the QQQ is now in a bull market, having moved up greater than 20% from its low of 253.26 on October 13, 2022. That confirms the tip of the 2022 bear marketplace for the NASDAQ.

So, for now, let’s assume the worst is behind us and we’ll be taking a look at larger costs forward. What shares may we take into account shopping for and why? Listed below are two that I like:

Amazon.com (AMZN)

If the inventory market does properly this 12 months, it’s going to possible be as a result of Fed hitting the brakes on rate of interest hikes, promptly a decrease 10-year treasury yield ($TNX) within the course of. In that sort of atmosphere, I imagine progress shares might be the place many of the management resides. Amazon.com (AMZN) definitely suits the invoice. Technically, AMZN simply broke out of a bullish inverse head & shoulders continuation sample and broadline retailers ($DJUSRB) are lastly displaying relative energy:

There are a number of positives right here. Nothing has been confirmed but, when it comes to relative energy, however the enchancment in 2023 is slightly apparent. The February absolute and relative highs are key goal ranges. Strikes above the February excessive can be extraordinarily bullish.

ServiceNow (NOW)

NOW is breaking out of the same bullish sample, clearing key overhead value resistance. However does it maintain the transfer by at present’s shut? That’ll be what I am watching, as a result of if it does, I might see a pleasant run again to that February excessive. To the draw back, NOW held up within the assist zone between value and hole assist and is “NOW” poised to run:

Common quantity on NOW is 1.58 million over the previous 50 buying and selling days. Right this moment’s quantity is over 800,000 within the first 90 minutes, so we’re seeing confirming quantity. It is pretty easy – both at present goes to be a significant breakout or it will be a false breakout. It simply is determined by the place we shut. NOW was main the software program group ($DJUSSW) larger in January. It is lagged badly throughout its current consolidation, however the NOW relative energy line has begun turning larger once more (blue circle) and a breakout might set off a lot additional relative energy forward.

I will be internet hosting our newest market outlook on Saturday, April fifteenth at 10:00am ET. If you happen to’re uncertain of the bull vs. bear market debate and the place we at present stand, mark your calendar for our occasion. It will be very instructional and open to the general public. We might be sending out invitations to our whole FREE EB Digest group, together with our EarningsBeats.com members. Merely CLICK HERE and enroll together with your title and electronic mail to save lots of your spot!

Comfortable buying and selling!

Tom