EarningsBeats.com Digest for Friday, July 12
| Dear EarningsBeats Community Member: The S&P cracked 3000 for the first time, the Dow climbed above 27,000 for the first time in history and the NASDAQ hit its all time high, all happening just as earnings season is about to begin. This tells me that either traders have higher expectations for earnings or that the market is in for a rude awakening should overall earnings start coming up short. The banks will kick off earnings season when Citigroup reports its numbers before the market opens on Monday, followed by Goldman Sachs, JP Morgan and Wells Fargo on Tuesday. So we'll start to get a sense for what the quarter might look like - and how the market reacts - early next week. At your service, John Hopkins EarningsBeats Using Relative Strength to Your Advantage Yesterday, Delta Airlines (DAL) reported excellent quarterly earnings results. They beat on their top line with record-high revenue of $12.54 billion and easily cruised past bottom line estimates, $2.35 vs $2.29. While the "news" hit yesterday, the market has been telegraphing this solid report throughout the quarter. How? On their chart:  Use relative strength to your advantage. A couple things stand out to me on this chart. At the bottom of the chart, you'll notice that airlines ($DJUSAR) has been a group that Wall Street doesn't like. You might hear airlines get some vocal love, but that's not where the money is going. Yet DAL has stood above the airline crowd, easily one of the best performing stocks in the industry, if not the best. This is how we truly know who Wall Street loves. Follow their money, not their mouths. Happy trading! Tom Bowley Sr. Technical Analyst |