EarningsBeats Digest

Published: Wed, 02/09/22

EarningsBeats.com Digest for February 9, 2022

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Join Tom Bowley for a briefing on market activity on Mondays and Wednesdays from 9-9:30 am EST before the opening bell. Click here to listen live or visit our YouTube page later today to view the recorded session.

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Join Us For Our February Educational Series

Last month, we told you the market would be volatile this year and was heading lower. But now the question is how much lower? We have a cyclical bear market on our hands and we've designed three specific events to help YOU navigate what will be a very difficult 2022.

Join us for these three timely events:

Session 1: The January Effect | Recording available
Session 2: The Anatomy of a Cyclical Bear Market | Saturday, February 12th at 10am ET
Session 3: The Most Overlooked Growth Stocks | Saturday, February 19th at 10am ET

These are 3 MUST-ATTEND events. Knowledge in all 3 areas will likely make a HUGE difference in your 2022 trading results. No one has studied stock market history more than Tom Bowley, Chief Market Strategist and he shares some of that historical knowledge in "The January Effect." But where and when should we be thinking "market bottom"? Find out during "The Anatomy of a Cyclical Bear Market," where Tom explores prior cyclical bear markets, looking for common denominators to help us find the current market bottom. Once that bottom is spotted, understanding those stocks that provide the biggest rewards later in 2022 will be paramount. Tom will highlight those that he's most interested in during "The Most Overlooked Growth Stocks."

You do not want to miss any of these events! Click below to join us.

Reserve Your Seat

Is This Bounce A Great Short Set Up?

Sea Ltd (SE) has been absolutely crushed since its high in October. After trading for as much as 370 less than 4 months ago, SE tumbled to 120 less than two weeks ago. The volume on the selling has been extraordinarily high. The downtrend is quite clear and SE closed within a whisker of testing its 20-day EMA, a moving average that it has not closed above since mid-November. Here's the chart:

After an excessive beating, it's certainly possible that SE pushes through its 20-day EMA, but the only other time we've seen price action on SE near the 20-day EMA throughout this downtrend was back on the first trading day of 2022. I'd expect to see sellers at this level and if SE does make the short-term breakout, shorting it at the current price at least keeps the risk minimal if it does continue to push higher. I see the next two key price resistance levels to be 166.84 and 183.50. Eventually, I'd look for another bout of selling that takes SE back down to test its recent low near 120.

Happy Trading!

Tom Bowley
Chief Market Strategist

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