Apple, Amazon, Earnings and What they Mean for the Market

[Music] good evening Theo trade this is cornrows bloomin watch the Theia not the video for the 30th of April 2020 and we're still talking earnings expected moves and yes even though you might not be playing this earnings season it's good to know what major companies for example Apple and Amazon have reported earnings and what the stock is done immediately following that and that was the play in Google yesterday we'll start with the ESPE real quick and we'll come in to these individual names so the S&P it's gonna be on the 5-minute chart here but mainly focus your attention on the daily chart to the right still with a midpoint still with is to 900 level which is roughly to 911 Dawn's gravity spot all these levels are gravity and the daily chart we see a lot of them they do help us as intraday traders mainly for departure plays that was a departure up yesterday's session and a departure down in today's session but we're talking earnings and expected moves and how the markets are playing and how these big names big a market cap movers will play into Friday's session let me first start with Google because it had earnings on yesterday's session at the close and here they were what you want to focus on on this commentary this video tonight not so much on where this one-minute chart goes but how this daily chart plays in you're looking at the straddles I have Don's expected move for the earnings on the market so if it's already reported don't worry these things are not gonna play into stocks like Google that have already reported I'm showing the probability of expiring cone which takes a look at the volatility component of the next few months near-term expiration options and we're looking at implied volatility so all this is playing on the bigger fixture so just for reference Google into yesterday's clothes reported earnings we can see that it was roughly on here nine point eight seven so nine dollars and 87 cents on the earnings I always look at how that plays into expectations we can obviously do that within these analyze tabs if you're curious go back inside earnings and look at any stock you would like so Google for example how its performed implied historical volatility actual versus expectations beat or not and then of course how this straddles at the money straddle is played and resolved we're not playing too much into the earnings again Don talks about that so this is more of an observe and learn earnings season as opposed to actively trade it though you certainly can try and play some butterflies or some spreads and the like so keep in mind whenever you want to look inside the earnings you can take a look at either the news a lot to read of course this earnings tab on the analyze chart or grid how the price has behaved how each little earnings has played into a gap up gap down and of course how implied in historical volatility have interacted and the at the money straddle and Google has beat earnings all except for the last quarter that's just one way to look at the markets of course we can look at Apple which just reported and with the respect to Apple we'll go ahead and link this here apples been in line with Wall Street estimates just today they had a small beat and again that's on the news profile on thinkorswim life and news revenue and what the news headlines are and I like in there if you're curious I can't do that all in the midst of a ten minute video tonight but those or you would find the resources to study and learn more about your positions and how the stock has performed with gaps Lily over here actually for the q2 xx xx quarter one quarter to back to the charts though with Apple reporting earnings it's two point five five four share this is playing into the expected moves again grain of salt and these at the money straddle x' so that's playing up to the three thirteen three sixteen four share it's sort of obscured by the chart grid and we see the probability of expiring cone wide or when the implied volatility is higher and what's the stock doing at the moment that's where the five minutes chart and the 1-minute chart come in mainly for just interest point of view and how it might play out into Friday session so all that being said Apple is a market mover and how it reports how it behaves can influence the market up or down on Friday not to mention Amazon so again as of the video which is shortly after the market closes here on the 30th not much for eeeh for Apple it's roughly where it started so it's going to close the session to 94 and right now it's just above 294 so not not a lot after a gap end and go but we'll certainly play into that on its friday session amazon is a little bit different so it's parameters in terms of strength or straddles are 2 6 8 6 2 2 6 1 so roughly speaking expected move again we're not not doing that much with this because volatility and earnings are just a little bit off pace due to the coronavirus and the economy shot down so that's while we're probably punting or not trading this earnings season it has a unique variable to it and at the moment amazon again news always available here just link your chart to the news tab and you can go right inside that you can also click here and see the earnings and of course once again well there you go right sir earnings are estimated 6.35 actual 5.01 so that's a little bit of a miss in that sense all right so what's going on Amazon is popping to the downside expected move to the downside to 261 that's quite a way away so this one-minute chart all it does for reference at the end of the session is show us what the overnight or snap reaction is to the earnings this probably will be different tomorrow as we start the next session so keep that in mind for your trees just walking you through these and how this plays out so Apple is up two flat after the earnings Amazon is down how much is it down I don't they significantly right well I should say I shouldn't say that two four five oh it trades about $100 low so two three seven Oh comes in right here hard to see I know but zooming in two three its close the session at two four eight level two four seven four etc and now we're down to two three six oh right just yes keeping in mind price levels and volatility beyond the top names of Amazon an apple we have Amgen nine again the parameters are here during Don's weekly expect not weakest went to move with the earnings implied volatility straddles and all the information from the analyze tab plays into it as well all the chart says interests of interest of note Amazon's gaffed insurance lower Amgen is gapped and turn lower Gilead Sciences that's been in the news a lot lately it's implied volatility I actually take a look at the trade tab because this is fun the implied volatility for Gilead remember I had that little trial since the markets fall on him because that missed some data but then it's back in the news so Gilley adds a health care trying to work on some either vaccines or treatments or just medical things for the coronavirus and its stock certainly has a high implied volatility over a hundred and fourteen percent and that normalizes and as we go forward but it's still in a high volatility state that is going to translate I'm going to make this larger in to maximize the sell how the probability of expiring Cohn so that's what this is right here and it can just kind of cross-check in the indicators we don't use the Bollinger Bands implied volatility rank probability of expiring Cohn and of course we have Don's earnings indicator and of course implied volatility so as we get ready to trade Friday session we did have a down date today that's I think the dominant thesis that's what you should be doing is selling into a rally here to 900 sharpy pivot along with to 911 think the markets gonna tank and go lower but can't predict the future just gonna put the trades on manage the trades manager spreads keeping in mind any headline news and of course major earnings reports from leading companies will have more information you'll know more than I do because you'll know this video you'll be receiving this video a few hours after this so there'll be additional movement in the after-hours market and of course the pre market activity and then Friday session is a go as always be careful and safe square rosenbloom leads for Theo at nightly video for April 30th 2020