I took a day off from the market and I missed one of the most significant moves we’ve had in months.
As earnings are announced, we’re finding that more companies did a good job lowering their expectations last quarter and now they are “beating” expectations this quarter.
Ok, so yesterday the market rejoiced and pushed higher on all of this positive news. But what was the positive news? Consumers are spending while ignoring a possible recession?
Or maybe the market pushed higher on the news that Apple (APPL) said they are reining in their hiring and spending due to fear of a future recession.
Or maybe the market pushed higher because Netflix (NFLX) lost fewer subscribers than projected. They “only” lost 1 million subscribers since last quarter and yet the market pushed the stock higher because the news could have been worse.
This is why I love earnings season. Anything can happen.
That’s also why I have a specific trading plan that I use during earnings. The emotional swings can be a little much if you’re not comfortable with the price action.
If you’ve struggled with haphazard results or emotional swings with the market over these past six months, I urge you to take advantage of a quick, 2-part video series by Jody Samuels.
I’ve had the pleasure of getting to know her over the last couple of months and her training is worth your time. I can’t stress that enough. If you’re seasoned or a newbie, there’s something for everyone.
When you’re done with the training, come back and we’ll go through some key levels for the S&P 500.
The S&P 500 chart finally broke through a long-term downtrend line, which has the potential to be positive news, but we need follow-through and I would expect to see a return back to the trend line and use that as support. Or, will we match the late May, early June price action (#2) where we broke through the previous downtrend line and then moved sideways before kicking lower?
We’re up about 5% in 4 days, so don’t be surprised if we see a pullback here. But if there’s a followthrough today on the breakout above the trendline from yesterday, we could see some price action to the upside, even if the fundamentals in the market are still shaky.
That said, here’s a weekly chart, and a key level that we need to hold by the end of the week is $390. If we can hold that level, we could be on the way to $407. There is so much cash on the sidelines and so many people are bearish that there is a chance we get a short squeeze here.
However, if we finish lower than $390 by the end of the week, we could certainly be headed back to $362, or at least $375.
While we wait to see where we finish the week, we’ll turn our attention to the upcoming Fed meeting. I’ll see you tomorrow!
As we look for trade ideas, the U.S. government just handed over a potential big win for one industry. Will we see a boost to the clean energy stocks after the Senate voted to unlock nearly $370 billion this past weekend?
What does all of this mean for the future? Are the jobs reports good or bad?
Keep reading to find out the key levels for the S&P 500 and what reports are likely to move the markets this week.
We could see another strong month ahead for tech and there’s one symbol that you may want to add to your trading list.
Keep reading to learn more about the one symbol that could have a strong August.
As the markets remain relatively flat, theta decay is your friend this week so I thought I’d write about a trade that has been showing remarkable accuracy lately.
This one trade has a 90% accuracy rate. Keep reading to find out more.
It wasn’t too long ago that the market was reacting (or overreacting) to every piece of news that was published. Over the last month and a half, the markets have settled down some. That can be seen from the VIX (volatility index) which has been steadily decreasing since the mid-June market lows.
The Mediots Are At It Again
As we’ve explained over the last few months, it was likely that the U.S. economy would meet the ‘technical’ definition of a recession (two or more consecutive quarters of negative GDP).
It’s official, the Fed increased interest rates by 75 basis points for a second straight meeting. Inflation remains high, job growth is slowing, and consumer confidence is at historic lows.
Maybe that’s why investors are rushing toward dividend investing to protect their portfolios. With a recession likely on the horizon, if we’re not there already, and dividend payouts projected to increase throughout 2022, there are three quality companies you should consider for your portfolio.
What can learn from the major companies that reported earnings?
Alphabet (GOOG/L) released earnings and missed overall, but their ad revenue beat expectations so their stock went up after hours. Microsoft (MSFT) missed on cloud revenue and ad revenue and their stock went down. Great.
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