This is a question directly from one of our EarningsBeats.com members and it honestly goes right to the heart of my trading strategy, so I thought it was a great question to answer and share with everyone. Because I deal so closely with earnings, gaps are a huge part... READ MORE
I'm constantly discussing relative strength, and I don't just discuss it with respect to individual stocks. I want to know where money is rotating to among industry groups. It's why I keep an industry group relative strength ChartList at EarningsBeats.com. I view every... READ MORE
Transportation stocks ($TRAN) are important because they tend to go higher and drive the S&P 500 higher when the economy is strong, expected to strengthen, or both. Off of the 2009 market bottom, the best advances on the S&P 500 during this secular bull market have... READ MORE
I try to minimize risks as best I can. That means generally trading only companies that are in Wall Street's good graces. In order to get there, I believe it's really important for companies to deliver on their promises. It's called "under promise... READ MORE
Fear is an almost uncontrollable emotion. And when you combine that with financial anxiety, it typically results in predictable fashion - a "throw the baby out with the bath water" selling event. But the good news is that, once the masses grow fearful enough, stock markets rally. After... READ MORE
At EarningsBeats, we've been trying to tell anyone willing to listen why the stock market is going higher. I was definitely among the tiny minority back in March and April when I suggested that this downturn was a cyclical bear market within a secular bull market. I think... READ MORE
Tesla has been a leading auto stock ($DJUSAU) since it bottomed at 176.99 on June 3, 2019, but few traders expected the stock to clear the $1,000 barrier in just over a year. It's been a crazy run, but Wall Street continues to support the stock... READ MORE
June has been fairly kind to the NASDAQ 100 index ($NDX), technology (XLK), software ($DJUSSW), and internet ($DJUSNS) and these have all been leaders, but the combination of overbought, negative divergences and a weak seasonal period has sent all four down to areas not seen recently. Let's start... READ MORE
I am constantly performing research, using my analytical skills to uncover the best stock market opportunities. At EarningsBeats.com, we have a proven process of identifying leading stocks in leading industries. It all starts with fundamental research, which helps us to limit the number of stocks in our trading universe... READ MORE
I think most market participants would agree that the past 19 months, which has included 2 cyclical bear markets, have been trying, to say the least. At the time our Model Portfolio was created on November 19, 2018, the S&P 500 stood at 2690.73. At Thursday'... READ MORE
If you're just showing up at 9:30am ET and deciding last minute which stocks to trade, I think you're doing yourself a major disservice. You also are likely allowing the market to dictate to you which stocks you're interested in. There may be... READ MORE
I've never understood the attraction to short selling, especially in a secular bull market. I get it - March and April didn't really feel like a big time bull market. But it was still part of one. March represented a cyclical bear market in a massive... READ MORE
It's been a shocking rebound to many, but I believe this party is just getting started. Fortunately, we were able to see the increase in the Volatility Index ($VIX) in late-February as an appropriate warning signal and then quickly realized that much of the selling was nothing more... READ MORE
One of my favorite stocks throughout this pandemic has been Zoom Video Communications (ZM). It's been wildly volatile, but also extremely profitable - if you can hang on through all the ebbs and flows. Bulls' patience is currently being rewarded as ZM absolutely flies into its earnings... READ MORE
In developing our Short Squeeze ChartList, which is a fancy name for doing our homework and organizing potentially explosive stocks into one ChartList for our members, we were looking for companies that traders are betting against. When traders believe a company is overpriced, for whatever reason, they sell that stock... READ MORE
I have a routine that I've implemented where I typically review market action around 10:00am ET, 30 minutes after the market has opened. It's not at all unusual to see uptrending stocks down in the morning, so running scans at about that 30-minute mark can... READ MORE
Last night, after the closing bell, NVIDIA Corp (NVDA) did what Wall Street expected - it blew the doors off its earnings. Revenues were reported at $3,080.00 vs. its consensus estimate of $2,995.27 and EPS came in ahead of expectations at $1.80 vs. $1.69.... READ MORE
I review a lot of the Dow Jones industry indices, but one problem is that you cannot trade an index. Naturally, I receive plenty of questions like "how can I benefit from semiconductors if the Dow Jones U.S. Semiconductor Index ($DJUSSC) is breaking out? Obviously, one way would... READ MORE
I've coached sports much of my life and there are two key elements to succeeding in athletics: practice and confidence. Raw talent and athleticism don't hurt either, of course. I don't care how good you might think you are, to excel in sports, or... READ MORE
It's the most exciting time of each quarter for EarningsBeats.com and its community members. We're one day away from the equivalent of the NFL Draft for equities. The beauty of our Stock Market Draft, however, is that no one else participates! We can literally select... READ MORE
It's been a very difficult environment for small caps ($SML) and mid caps ($MID) for quite awhile. We should take note of any stocks in these two asset classes that are moving higher because they're doing so completely against the grain. For instance, take a look... READ MORE
One part of the U.S. stock market has been setting new highs and dragging other areas higher with it. Then we have groups reaching the depths of despair with little or no end in sight to their selling and misery. I've honestly never seen anything quite like... READ MORE
Impulsive selling gripped the market yesterday afternoon for the first time in quite awhile and it came on the heels of a few warnings signs that I passed on to EarningsBeats.com members earlier this week. First, the accumulation/distribution line, which has been a HUGE friend of the bulls... READ MORE
One thing that this pandemic has caused - and few would disagree - is an inordinate amount of fear. An easy way to depict this is simply to look at the Volatility Index ($VIX) and the equity only put call ratio ($CPCE). When these two spike, it's a... READ MORE
I've run into multiple friends of late, socially-distanced of course, who keep asking me, "Aren't the airlines a great value now?" Ugh. Really? What business can you think of that (a) has lost 95% of its customers AND (b) has little hope of attracting... READ MORE
The S&P 500 closed at an all-time high on February 19, 2020 when it reached 3386.15. At its Friday close of 2929.80, the benchmark index remained 456.35 points, or 13.48%, shy of that high. February 19th was also the date that I announced our... READ MORE
Trading success, to some degree, is simply understanding the laws of supply and demand. There is a finite supply of shares available to buy of every stock traded on the various public exchanges. When the demand to buy those shares exceeds the supply available, price rises. Many of those involved... READ MORE
Happy Cinco de Mayo to all! Below is my Daily Market Report that is sent out every day to EarningsBeats.com members. If you'd like to subscribe, I'd love to have you join our growing community! Here's a link: Fully refundable $7 30-day trial... READ MORE
The S&P 500 has rallied more off the March 23rd bottom than just about anyone could have predicted and it's done it in record time. I've remained bullish from a longer-term perspective, relying on the secular bull market advance that began in 2013 when... READ MORE
I haven't abandoned my philosophy of trading stocks of companies whose recent quarterly revenues and EPS beat Wall Street consensus estimates. Such companies are included on my Strong Earnings ChartList (SECL), which up until recently, I traded from exclusively. I still believe it's incredibly important for... READ MORE
Below is the Daily Market Report (DMR) that I send out to EarningsBeats.com members every day that the stock market is open. I keep our members posted as to key developments, including what's driving the stock market in both the short-term and long-term. One key factor is... READ MORE
I always love having the added bonus of guaranteed buyers when I see a stock that's broken out. That's what happens when a huge percentage of a company's float is short. In December 2019, I wrote a ChartWatchers article, "Here's A... READ MORE
Zoom Video Communications, Inc. (ZM) broke out technically just before the start of the NFL Draft and continued its stealth move higher on Friday - that is, until Facebook (FB) announced that they wanted to join the video meeting party. ZM traded as high as 181.50 intraday on Friday,... READ MORE
A few weeks ago I joined David Keller, Chief Market Strategist of StockCharts.com and host of SCTV's "The Pitch", to explore opportunities created by the COVID-19 panic. I explained at that time that my analytical background led me to research the massive rotation that took... READ MORE
In the land of trillion dollar companies, it may seem difficult to find new and exciting young companies to invest in. But if you do some research, you can find them. When I was running scans and doing homework a couple weeks to uncover stocks for my Strong AD ChartList... READ MORE
COVID-19 has lit a fire under one industry group that already was showing relative strength. Now its relative strength is off the charts and showing no signs of slowing. In fact, it closed at its highest level in more than two years and is within a whisker of a MASSIVE... READ MORE
The volatility has been extreme and the back and forth action has been dizzying at times. But there have been a couple common denominators throughout this 7-8 week up-and-down roller coaster ride that allow us to improve our odds of trading success. And all the tools you need are right... READ MORE
I'm not that surprised at the continuing rally. Yes, prior extreme selloffs like 1987 and 2008 resulted only in 38.2% and/or 50.0% Fibonacci retracement rebounds and, when we look at the S&P 500 currently, we're right at that major resistance area:... READ MORE
Let me give you an update as to how the SPY (ETF that tracks the S&P 500) and QQQ (ETF that tracks the NASDAQ 100) have performed since the top on February 19th, broken down by opening gaps (net) and intraday price action: SPY: * Closing price, 2/19/... READ MORE
Wall Street is betting on certain industry groups to weather this COVID-19 storm much better than others. Knowing which groups are favored is very important, especially if we suffer another bout of impulsive selling. Gold mining ($DJUSPM) and mining ($DJUSMG) are the two best performers, gaining 19.51% and 18.... READ MORE