Strong Netflix Report 'Suggests' Buying in Other Big Tech Names

The big change in the stock market Tuesday is leadership, but a strong close is still needed.
Stocks quotes in this article: NFLX, FB, TWTR, ANET, GS, CASA, BZUN, PAGS, RYAM

The strong earnings report from Netflix (NFLX) is helping to create some sympathy buying in big-cap technology names. Facebook (FB) etc. are running up on strong buying and other names such as Twitter (TWTR) and Arista Networks (ANET) are coming back from recent struggles.

Goldman Sachs (GS) is unable to gain traction on its report but financials are acting better and that is helping to keep the S&P 500 at the highs.

The big change today is in leadership. The price action is quite different when we have big liquid names that are leading. Recently, the indices have been gaining but there hasn't been any real leadership to attract sustained interest. That has changed Tuesday and creates a much better tone to the trading.

I still don't see a lot of great chart setups on my radar but some that are looking much better today are Casa Systems (CASA) , Baozun (BZUN) , PagSeguro Digital (PAGS) and Rayonier Advanced Materials (RYAM) .

What the market needs now, to really change the character of the action, is a strong close. We have had pretty consistent weakness in the last hour of trading lately and that needs to change for the price action to further confirm that we are in an uptrend.

Facebook and Goldman Sachs are holdings in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells FB and GS? Learn more now.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

At the time of publication, Rev Shark was long CASA, BZUN, PAGS and RYAM.

Action Alerts PLUS, which Cramer manages as a charitable trust, is long UNH and GS.

TAGS: Investing | U.S. Equity | Technology | Earnings | Markets | How-to | Stocks

More from Technology

Apple Gives Market a Lift

James "Rev Shark" DePorre

Stocks trended steadily higher as the focus remained on stock picking and earnings, rather than big picture worries like China, the economy, politics and the Fed.

Facebook's Latest Libra Proposal Could Win Over Some Regulators -- At a Cost

Eric Jhonsa

The social media giant says it's open to having Libra consist of a series of 'stablecoins' pegged to existing currencies, rather than just one cryptocurrency pegged to a currency basket.

Be Very Careful With Coupa Software

Bruce Kamich

Broadening patterns are interesting and somewhat difficult to handicap.

Waiting for Buy Trades to Trigger in Semis, Social Media and the Cloud

Carolyn Boroden

VanEck Vectors Semiconductor ETF, Twitter and Oracle are the three setups we're tracking.

The Tech Sector's Valuation Gap Is Narrowing -- And That's Probably a Good Thing

Eric Jhonsa

Many tech stocks sporting high valuations have been selling off in recent weeks, even as the rest of the sector generally holds up well.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight