The charts in this video are powered by MarketSmith
The earnings season is heating up and there are several hundred major companies reporting this week. Some of them – AMZN, AAPL, FB, GOOGL, SHOP, SPOT, UPS. Given the weightings of the first four, their earnings reports will be market-moving events. For the most part, I expect any gaps to be faded in them – if they gap up, we might see a temporary sell the news events as expectations are highs given the moves in the past 2-3 months. If they gap down, the downside will probably be limited to their 50-day moving averages as the market still believes that the dips are buying opportunities because of the Fed’s open market purchases.
The rotation into sectors that would benefit from the “re-opening” of the economy hasn’t happened yet. There have been the occasional spikes but for the most part, no follow-throughs. Restaurant stocks shined on Friday in red tape. Let’s see if they can continue higher next week.
Try my new subscription service which includes a private Twitter feed with option and stock ideas, emails with concise market commentary and actionable swing and position trade ideas, the Momentum 50 list of market leaders, and much more. See some of the recent testimonials.
Here’s a Google spreadsheet tracking all closed option and stock ideas shared on my private Twitter stream and emails for subscribers.
Check out my free weekly email. to get an idea of the content I share with members.