Good morning, traders…
Monday was one of those gut-check days in the market. The NASDAQ dropped more than 3%, while Tesla Inc. (NASDAQ: TSLA) sold off over 7% ahead of its earnings.
Sentiment was absolutely wrecked. It felt like everyone was bracing for impact, and Tesla’s report was the first real test of growth momentum heading into Q1 earnings season.
And sure enough, the Tesla numbers were horrible. Profits fell 71% year over year. The company missed estimates on nearly every metric.
But in true Elon fashion, the story didn’t end there…
He used the call to announce he’d be stepping back from his role at the Department of Government Efficiency (DOGE) — a move that gave Tesla shareholders what they want most: focus and clarity from their CEO.
However, that wasn’t even the biggest surprise of the night…
Not long after the earnings dropped, President Trump held a press conference during which he publicly walked back speculation about firing Fed Chair Jerome Powell. Additionally, he hinted at easing up the trade war with China, saying that the tariffs would “come down substantially” from the whopping 145% they’re currently sitting at.
That string of comments flipped market sentiment in a matter of minutes.
By Tuesday and Wednesday, the major indexes were flying — squeezing shorts, burning puts, and shocking anyone who wasn’t paying attention.
Let’s break down what’s behind this tone shift, whether it has legs to continue, and how to trade this massive trend reversal…
Tesla’s Surprising Earnings Reaction
On Tuesday afternoon, Tesla Inc. (NASDAQ: TSLA) reported its worst earnings of all time — negative growth, huge sales declines, just brutal numbers.
Any other auto stock would’ve been down double digits on these numbers.
But then, Elon said he would be stepping back from his role at DOGE. This caused the stock to stay flat after the report.
That afternoon, once the “Powell comment” hit, Tesla actually moved higher.
Historically bad earnings, and the stock goes up:
That tells me something: the bad news was already priced in. And that could be true of many other stocks in the market.
That doesn’t mean I’m buying Tesla calls or getting ultra-bullish.
But it’s worth watching how a stock reacts when the news is known and still doesn’t fall apart.
3 Stocks with Rocket Ship Price Action
Amazon.com Inc. (NASDAQ: AMZN) came out swinging on Wednesday — absolute rocket ship action. The kind of move that makes you wonder how you missed it … and then reminds you to avoid FOMO.
I get it. It’s annoying to watch a chart rip without you. I felt that too.
The same goes for Robinhood Markets Inc. (NASDAQ: HOOD) and SoFi Technologies Inc. (NASDAQ: SOFI), both up big. A lot of order flow came in before these moves, which is why we were watching them already.
But again, this wasn’t stock-specific — it was the tone of the market shifting rapidly.
We’re now back at the 21-day exponential moving average on SPY:
It’s a spot that matters. We’ve broken out of a short-term downtrend, and for the first time in weeks, a “V-shaped” rebound could be staring us in the face.
That doesn’t mean it’s clear skies from here, but it does change the technical construction of the major indexes.
4 More Names I’m Watching
Here are four big bets from my OMEN Scanner I’m watching right now:
Williams Companies Inc. (NYSE: WMB)
Energy name, nice and slow. Not a big gapper, which is what I like when I’m thinking about a potential swing. I’ve played it before inside this massive range, and it’s back there again. A move back toward $60 isn’t out of the question. We just have to be patient. This isn’t a flashy one, but it’s been consistent.
Grupo Financiero Galicia S.A. (NASDAQ: GGAL)
Strong chart, consolidating right at a volume shelf. Banking name out of Argentina, not a household name here, but the chart is clean. There’s been heavy order flow, and I like how it’s setting up above its key levels. That $70 target is in sight.
Temu (Ticker: TMS)
AI name, got a nice pop but still may have more in the tank. It was up 7–8% yesterday, so if you missed the first move, don’t worry — just watch how it handles the opening levels. If risk stays on, this could be one of the better ones to go back to.
Plug Power Inc. (NASDAQ: PLUG)
I haven’t touched this one in ages, but when I saw it trading under $1, I had to laugh. A few years ago, people were calling this a clean energy revolution. Now it’s a penny stock. Still, it’s caught a ton of volume and showed signs of life. I wouldn’t hold this long-term — but it might be fun for a short-term move back to $1. It could be a quick reversal trade for those who like a little volatility with their coffee.
The Market’s Tone Has Shifted
This market’s tone shifted on something small. But small things can have big effects when everyone’s tense.
A bad earnings season, geopolitical worries, rate hike talk — add them all up, and folks get on edge.
Then one comment about Powell, a surprising Tesla reaction — and it’s like someone opened an explosive release valve.
I’m not saying we’re heading straight up from here. I’m not saying the bottom has been put in.
But I am saying this market just reminded us how much sentiment matters — and how fast it can shift in volatile conditions.
So we stay ready. We trade what’s in front of us. We don’t chase what’s already moved, but we learn from it.
This is where the best setups come from. No guesswork — just process and patience.
Happy trading,
Ben Sturgill
P.S. Last earnings season, we had 100 winning trades in a row in Earnings Edge — don’t miss the next 100…*
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