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Apple beat earnings estimates again, but it sold off after it gave a soft sales guidance and said it will stop to provide unit sales updates. The market reaction is not unique to AAPL. The market has been unforgiving this earnings season. It has punished the slightest weakness in all earnings reports. This is why we say that the market mood matters. Lower prices are usually the end result of high expectations and sour mood.
In the meantime, consumer staples continue to lead and break out. This is a typical sign that the market is trying to discount a potential recession 6-12 months ahead.
We go over some new names on the SL50 list and discuss the strength in Mc’Donald, Starbucks, and some other retail names.
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