Buyback Watch for Swing TradingEarnings are over so buybacks are back in the mix. The market is likely to continue to be volatile and choppy until all the ETF investors who want to sell have done so. Then, the uptrend is likely to resume because there are not enough barometers warning of a recession AND we just had one 3 years ago.
Buybacks tend to drive price up, so they are a good swing and momentum trading strategy. Notice how neatly the support from previous highs halted the run down. Reversal points at strong support levels are one area to watch for buyback patterns.
Buybackstocks
NVDA: Earnings Stock of the DayThis big technology stock reports its earnings today AFTER the market closes. Sometimes the after-market reports are not great reports. On the weekly chart, NVDA shows one of the new tops taught in TechniTrader’s Definitive Guide to Market Corrections course. This is a Sheer Cliff top which is a sudden collapse of price after a trading-range sideways pattern of several months. The decline has been very steep and fast. It is resting at weak support. You can see from Accum/Dist that this stock has been in heavy rotation mode by the Dark Pools since 2017. The stock moved up on buybacks and speculation by smaller lots against the heavy rotation by the Dark Pools.
GE is in troubleGE has been participating in stock buybacks. They have spent a lot of their renaming capital on buybacks, 24 billion to be exact. I am guessing a lot of the stock buybacks were with borrowed money due to the low interest rates of 2009-2015. As the interest rates rise, GE will have to pay back their debt. The money GE put into its stock is worth less now compared to when they put it in. If this is borrowed capital then GE could be in serious financial trouble. Even if they will have a hard time recovering from their stock buybacks, I doubt GE will go out of business. GE makes well made, reliable products and is not a "scammy" company. I believe GE will double bottom at 5$. If GE announces plans pay off their stock buyback loans, then i think buying their stock would be a good idea. We will have to wait and see.