February 3, 2022, 10:04 pm EST
Volatility drama continued to play out in the stock markets during the earning season. Meta Platform Inc (FB) suffered from -26% drop that dragged Nasdaq -3.7% down today. Amazon (AMZN) also plummeted about -8% with worry about its after-hours earnings report.
Surprisingly, AMZN report was a good one so its stock price was up about +14%. Other internet stocks were also up significantly: SNAP +59%. PINS +21%.
However, these kinds of wild markets are not a bullish sign at all. In fact, it indicates a highly sensitive situation where the tightening process is about to start versus still bullish earning.
Our viewpoint intends to be cautious at this moment by limiting trading activities. In fact, there are still some emerging stocks to pay attention like medical devices company Becton, Dickinson & Co (BDX) which was up +5.4% for a new 52-week high after the earnings. Also, Alcoa (AA) was up +6% that is near a breakout position. Those stocks look attractive to add to the watchlist.
Tomorrow’s January non-farm payroll report is also important that could give a lot of weight to the market condition as well.