Here's today's EB Digest article that I sent to free subscribers close to 8am EST this morning. I just wanted to provide a sample of what you'll get if you SIGN UP. Looking for a Negative Earnings Surprise I've been providing a... READ MORE
Ok, it might be a tad early to call it a leader, but transportation services ($DJUSTS) recently broke out to an 8 month relative high to the benchmark S&P 500. Money has been rotating there and we need to be aware of this relative strength. Before we look... READ MORE
Stock market rotation occurs on a small level each and every day, but longer-term "big picture" themes emerge and it's critical for us to spot them early in their development in order to take advantage and ensure a much better chance of outperforming the major indices.... READ MORE
Anyone who has followed my work for the past decade knows that I've remained steadfastly bullish despite all the negative media rants. Follow the charts. There is no recession. The economy will strengthen. We'll get a trade deal. Heck, even the Fed is finally on board... READ MORE
On each of the past two Mondays, I've hosted webinars that have highlighted stocks poised to trend higher with earnings results. It's a concept I discuss frequently and most of it has to do with relative strength. If Wall Street is accumulating, we need to take... READ MORE
I completely understand that it's really not possible, but Wall Street does provide us a number of clues. When a company is being accumulated and is outperforming its industry group peers plus the benchmark S&P 500, there's typically a reason for it. As I&... READ MORE
As a trader, I'm constantly watching my industry group relative strength charts. There are 104 of them, so I could look at each one individually....or I could use the cool StockCharts tools to do all the work for me. Once I am in the ChartList that I&... READ MORE
It works like a charm. Wall Street places their bets ahead of earnings season, then the solid results pour in. Shocking? Not really. That's a big advantage to have - to be able to meet with management teams ahead of earnings reports (before the "quiet period"... READ MORE
There's been a lot said and written about the struggles of the FAANG stocks. Don't let any of it fool you. The only FAANG stock reeling in my view is Netflix (NFLX). In last week's "Q3 Earnings Sneak Preview", I said I... READ MORE
Earnings season is, by far, my favorite time of the year. It occurs four times a year and provides a significant number of trading opportunities if you know what you're looking for. My first piece of advice is this: Not all gaps are created equal. Many traders consider... READ MORE
October volatility in the banking industry ($DJUSBK) has been nothing short of crazy! On September 30th, the DJUSBK stood at 457.39. A little more than two weeks later, we show an index value of 460.82. No big deal, right? Well, October began with that infamous ISM manufacturing number... READ MORE
JPM did not disappoint Wall Street. The Street had been "banking" on a solid report, as evidenced by its solid relative performance to its banking peers and to the benchmark S&P 500. And wow did they get it! JPM reported revenues of $30.06 billion and... READ MORE
Last week, there were eight industry groups within consumer discretionary (XLY) that gained 2% or more, lead by the rapidly-improving apparel retailers ($DJUSRA), which gained 4.57% and broke out to 5 month absolute and relative highs: The strength in the DJUSRA helped the XLY bounce off trendline support this... READ MORE
Every earnings season, there are a few key reports that I focus on. It could be that an industry group is beginning to show strength and a key component is reporting that could influence the direction of the group for the entire upcoming quarter. Or it could be that a... READ MORE
Wall Street has placed its bets as we work our way into earnings season. It's very easy to see which groups are favored by big money - just look where that money has been going. Today, I'll give you my top 2 industry groups at the... READ MORE
Earnings season officially starts this morning, in my opinion, with quarterly results coming in from Citigroup (C). While C may provide the banking group a lift today, the bigger report comes on Tuesday when JP Morgan Chase (JPM) reports its numbers. Why is JPM more important? Because Wall Street has... READ MORE
Note The following is the EB Daily Market Report for yesterday. It is sent out each day (usually between 11am and noon EST) to our members at EarningsBeats.com. It's one of several new products and services that we've unveiled over the past month. If you&... READ MORE
Technically-speaking, things are about to get very interesting for U.S. stocks. We've seen two economic reports out in the past two weeks that beg for at least a 25 basis point Fed rate cut. There was the weak ISM manufacturing data out last week and then yesterday... READ MORE
That answer depends on your trading strategy quite honestly. Day traders likely don't care too much about technical indications on weekly charts whereas longer-term investors probably aren't going to grow too concerned by looking at charts day-to-day. Having said that, I put a lot more weight... READ MORE
I've discussed this on many occasions, but bull market advances requires the rotation of dollars from the bond market. We can have money going into both stocks and bonds for a short period of time, but that generally won't work over a longer period of time.... READ MORE
Ok, I'm being somewhat dramatic. I'm looking for several things. First of all, I'm quite bullish. It's hard to tell exactly how long this consolidation lasts, but I'm definitely nowhere near the camp that believes we're heading for... READ MORE
That's a great question and one that will be much easier to answer in 3 months. :-) U.S. stocks have been through a lot over the past 21 months. Since topping in 2018, we've seen tremendous volatility, but there have been a few constants. For... READ MORE
Before I talk about jobs, let's discuss the S&P 500. We're consolidating. In a secular bull market, that's fashionable. We went through this from 2014 through early 2016. This is simply the 2018/2019 version. Every downturn and we hear from the... READ MORE
Broadline retail ($DJUSRB), once a Wall Street darling and bull market leader, has fallen upon hard times the past three months. While the S&P 500 recently moved up to challenge its all-time record high, the DJUSRB never came close. Its recent downtrend is now approaching key price support... READ MORE
The September ISM manufacturing index fell from 49.1 in August to 47.8 this month, signaling a rather significant contraction. Export orders were much worse, posting 41.0, which was their third consecutive month of contraction. The report was released at 10am and, following a move lower heading into... READ MORE
Medical equipment stocks ($DJUSAM) have been solid absolute and relative performers for the past 7 years with few exceptions, so it certainly seems worthwhile to stay on top of its relative strength leaders. One such leader in 2019 has been Avedro, Inc. (AVDR). After a wicked week last week, AVDR... READ MORE
I know I speak of relative strength frequently, but it kinda makes common sense, doesn't it? In order to establish relative strength vs. your peers and the overall market, there has to be a lot of interest. When buying clothes, do you buy what's in style... READ MORE
Trading gaps from earnings is a big part of what I do. The reason is simple. When a company provides market participants new information, as a quarterly earnings report does, a new set of buyers and sellers emerge. Better-than-expected news will provide an immediate short-term boost in price, while bad... READ MORE
Financials (XLF) had been rather dormant for nearly 18 months - at least on a relative basis to the S&P 500 - but that is all about to change. While the group is certainly beginning to flex its collective muscle, the real confirming signal would likely be a... READ MORE
Pharmaceuticals ($DJUSPR) have definitely been an area to avoid in 2019, which is somewhat surprising when you consider how effective many defensive areas have been this year. Still, with the S&P 500 up roughly 18% year-to-date, the DJUSPR has actually fallen 2 points from 553 to 551, clearly... READ MORE
I've been watching and waiting to see if software ($DJUSSW) would begin to show leadership again as we approach earnings season, which will kick off in the next few weeks. If you've owned any software stocks other than Microsoft (MSFT), then you probably know all too... READ MORE
Semiconductors ($DJUSSC, -1.78%) had a rough session on Tuesday, but they had been on a roll since early-August, rising from 3350 to 3850, and there have been plenty of leaders to choose from. KLA Corp (KLAC), Lam Research (LRCX), Applied Materials (AMAT), and Micron Technology (MU) are certainly among... READ MORE
The S&P 500 is slightly more than 1% away from setting a new all-time high close and there are several areas of the market I'm watching closely to evaluate leadership in the next leg of this bull market. I'm going to ignore renewable energy... READ MORE
Well, I have to admit, I'm always watching this first chart. It's how consumer stocks are performing vs. one another. When consumer discretionary stocks (XLY) are outperforming consumer staples stocks (XLP) over time, I'm generally very bullish U.S. equities. Consumer spending comprises roughly... READ MORE
I've seen it so, so many times. The stock market is strong, trending higher and the bottom drops out. Ever heard of "buy on rumor, sell on news"? That was partly responsible for the end of week selling. The Fed's policy statement on Wednesday... READ MORE
The aerospace industry ($DJUSAS) has recently caught fire once again and it's worth noting - not only from an absolute perspective, but also from a relative strength standpoint. Each pullback over the past 5-6 weeks has been met with buying at the 20 day EMA, a bullish development.... READ MORE
I think most technicians would agree that stock market action into the close is generally much more important than stock market action just after the open. That is magnified even further when we have a major event take place intraday. Yesterday, we had a widely anticipated Fed meeting with growing... READ MORE
I'm nervous. I believe the market has shown how nervous it's been as money quickly rotated from growth to value stocks ahead of today's Fed announcement. Here's a 10 year weekly look at the IWF:IWD ratio (Russell 1000 growth vs. value)... READ MORE
Crude oil ($WTIC) was certainly in the news on Monday after a drone strike crippled Saudi Arabian oil production by roughly 50%. The immediate reduction in global oil supply was felt via a 14.68% surge in price to $62.90 per barrel. Obviously, that's a one-time type... READ MORE
FedEx Corp (FDX) will be reporting its latest quarterly results tomorrow after the closing bell. In late-August, FDX printed a bullish engulfing candle and it's been moving straight up ever since. It's now running into both gap and price resistance, however, so it needs a catalyst.... READ MORE