Thursday, January 26th, 2017

Earnings driving the stock market


The earnings season is upon us and we have seen some stellar earnings in many names. Most of the S&P earnings are above estimates in the quarter so far and that is also fueling the upside in stocks. The market seems to be consolidating here after a huge rise last 4 weeks. SPX, RUT and DJI all making new highs as they inch higher bit by bit into the unchartered territory.

There have been many earnings that came in as a surprise. GOOG didn’t fair very well this quarter , yet the stock dropped off and regained its 900 levels and still sitting there. The reversal in GOOG was instant and the short covering boosted the prices back to the highs. This is a Cup shaped pattern with a high at 928 and in due time it should be taken out.

AAPL had earnings today, and the stock bolted up 17 -18 points as it was predicted by market maker move. It will gap open tomorrow and we just have to see how it will do at 440 levels which will see short sellers in droves. The shorts are just salivating with orders ready for a big gap. A big gap and than a short to the downside with the high of the spike as a stop loss .

The existing home sales came in low as of this Monday, and the real estate market took a breather from non stop action. It has had its up days and the current interest rates are now sogging the appetite of buyers. This perhaps lead to more sell off among builder stocks and that has been going on for last few weeks.

This is a busy week for earnings and we are using several earnings plays to enhance our trading. We have traded CMG, NFLX, AAPL and JNPR last few days. The set ups are good and the earnings stratgey is working for our members area.

Comments

One Response to “Earnings driving the stock market”
  1. Dean Cahill says:

    I agree with you, dividends will always at some point, drive the stock market, that is what the PE ratio is all about anyway. great post

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