Podcast
Next Day Prep #94: Tech Giants Tank, Defensive Sectors Shine – Wednesday 8/20/2025
Key takeaways
- The market remains cautious with a focus on rotation and relative strength. Despite mega-cap weakness, technical setups in continuation and anticipation plays offer opportunities for active traders. Stay nimble, respect stops, and trade smart.
Next Day Prep: Tech Giants Tank, Defensive Sectors Shine
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood:
Today’s market exhibited caution with a focus on defensive sectors due to selling pressure on mega-cap growth stocks. The market mood remains cautious ahead of Fed Chair Powell’s upcoming speech at Jackson Hole.
Overnight Headlines:
- The Nasdaq fell six-tenths of a percent, S&P 500 remained slightly in the red.
- Money flowed into defensive sectors like Consumer Staples, Health Care, and Energy.
- Bearish market internals with sellers outnumbering buyers significantly.
Economic Announcements:
No major economic announcements highlighted in the briefing.
Earnings Highlights:
- Intel was the biggest loser in the S&P 500, down seven percent due to talks of equity stake offering at a discount.
- Analog Devices (ADI) showed strong price and volume action after a fantastic earnings report.
Top Movers:
- NVIDIA presented an impressive intraday reversal recovering from early losses.
- Stocks like Apple and Amazon experienced selling pressure while defensive sectors received bids.
Quick Trade Ideas:
- ISRG (Intuitive Surgical): Look for an entry near 480, target 485.50, potential to 490, stop below 478.
- ADI (Analog Devices): Entry around 244, target 246.50 to 250, stop below 242.
- LLY (Eli Lilly): Watch for entry around 695 support, targeting 710-715, stop below 690.
- CRM (Salesforce): Monitor bounce off 244.50 support, targets 248 and 250, stop below 243.