Hello, traders! Andy here, bringing you the latest trade ideas on this fine Thursday, February 1st. Before diving into today’s stock picks, let’s revisit yesterday’s market performance, which, to put it mildly, wasn’t the prettiest sight. A sharp drop in the SPY, culminating in a close at the day’s lows, stood out—not to mention the notable volume accompanying that move.

Now, for those chart enthusiasts out there, our eyes are peeled for the 20-period moving average lurking just below. And, let’s not ignore that significant line in the sand—the former resistance turned support level that signaled our previous surge to all-time highs. Spoiler alert: That didn’t quite happen exactly as planned, but the role reversal from ceiling to floor is what’s capturing our attention. Over the next few days, it’s this support level that’s going to be under our microscope.

Earnings Plays in Focus

When the market decides to throw us on a rollercoaster, it’s earnings plays that often take on the starring role. They can operate independently, sometimes shrugging off broader market trends and charting their path based on their performance data.

Today’s headliner is ALGN, which is displaying a gap-up over 8%, an impressive leap by any measure. But here’s the kicker—it’s perched right at its 200-day moving average. So, first thing after the opening bell, we’ll assess if ALGN can cling to this moving average and potentially climb even higher.

Cruise Control: RCL’s Unstoppable Ascent

Let’s talk about RCL for a moment—a name synonymous with smooth sailing in more ways than one. This cruise operator is no stranger to setting records, as it’s gapping up past an all-time high set back in December. If you’re in the market for upward trajectories and consistent outperformers, RCL is undoubtedly worth tracking on your radar.

Breaking Through the Downtrend: CTVA

Now, let me shine a spotlight on CTVA. Though it’s had its share of headwinds, reflected in a noticeable downtrend, earnings have given it a much-needed boost today. This stock is gapping up and snapping its downtrend in the process. I wouldn’t be surprised to see CTVA make a beeline for its 200-day moving average in the days to come.

“Even a downtrend can face an abrupt detour when earnings come knocking.” – Andy

The Short Squeeze Watchlist: Tread Lightly

Short squeezes are always an intriguing plot twist and can lead to explosive price action. However, heed this friendly word of caution—handle these plays with care. One particular earnings player to keep an eye on is still under wraps, but let’s just say it has a float of 46 million and a considerable 30% short interest. If it scales above $13, we might witness a squeeze in action.

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As traders, we’re no strangers to volatility and the unexpected. While today’s list offers a glimpse into potential movers, remember the golden rule—keep it tight, and remain patient. Trading isn’t a sprint; it’s a marathon that rewards the diligent.

Until we talk shop again tomorrow, stay sharp, folks.