The Gilmo Report

July 24, 2022

July 23, 2022 6:39 pm ET

This past week we saw big-stock NASDAQ names Netflix (NFLX) and Tesla (TSLA) report earnings, and in both cases the reports were better than expected. As I noted in my last report, as a bear market progresses and leading stocks have broken down 75% or more off their highs, analysts begin lowering expectations. This then sets up the potential for companies to beat those lowered expectations, even with negative reports, and send their stocks moving higher.

In my Wednesday report I showed how NFLX could have been played first as a short that day after it reported on Tuesday. After that it could have been taken as a long once it found support along the prior day’s closing levels and turned on the 620-chart Wednesday morning. From there the stock has edged higher but remains well below the “windowsill” of the gap-down falling window from mid-April after it reported earnings last quarter.

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