In the event you haven't heard, I called the bottom in the S&P 500 last week. I said earlier in the week that I'd select last week's low as my "bottom". That was 3636.87. Will that be the ultimate bottom? Well, I don't know for sure, but I'm seeing money rotate the way it does at bottoms - back towards more growth-oriented and aggressive areas of the market. It's certainly no guarantee, but as I explain often, it's about managing risk....keep reading

We've been mired in a bear market throughout 2022, but that doesn't mean we shouldn't be doing our homework, preparing for a reversal in key stocks, industry groups, sectors, and major indices. Many stocks are consolidating, failing to break above key price resistance levels. Tractor Supply Co (TSCO) was featured approximately three months ago here in the EB Digest and it remains in a multi-month consolidation pattern with a trading range from 182-207. Check this out:...keep reading

At an entry point, but showing renewed strength on increasing volume. A run to 16.60 shouldn't be ruled out....keep reading

Throughout much of the last 6 months, Lockheed Martin (LMT) has been trending higher and, despite its recent absolute price weakness, remains very close to its 1-year relative high vs. its defense peers ($DJUSDN). According to zacks.com, LMT is expected to earn $7.41 per share, but I think we're going to see a much better number than that and I wouldn't at all be surprised to see another uptrend emerge. Check out the current chart...keep reading

A lot of our research at EarningsBeats.com is driven by earnings season. I look at every earnings report and reaction throughout earnings season and find the emerging leaders for the next quarter to consider trading. Blowout results, a big gap up, and a huge hollow candle on heavy volume is very important in my analysis. And I don't know if I've seen a better report than the one GWW delivered yesterday. Wall Street agrees. Check out the GWW chart:...keep reading

Disciplined traders will understand this. Others will struggle with it. As a trader, I learned a LONG time ago that if you make big profits very quickly, it's generally a good idea to take them. If I see a potential 30% profit on a trade and I quickly make 10-12% within a day or two, the reward-to-risk of holding changes. There's the guaranteed 10-12% profit RIGHT NOW vs. the hopes that the trade continues to move in your favor, so that you can capture the full 30% profit. I'll take the "bird in the hand."...keep reading

Right now, the stock market can't seem to make up its mind whether to continue its recent downtrend, or to reverse at a key support area. As long as this continues, trading breakouts and breakdowns are both rather frustrating. But there is an alternative. I'm seeing many stocks simply trading in a range, repeatedly bouncing off support and failing at resistance....keep reading

By all accounts, 2022 has been a very difficult year. I was cautious/bearish heading into the year, but I've been expecting a strong Q4 to close out the year. While we are still higher since the end of September, the past few days' losses have given back most of the gains. There's a lot that goes into beginning a new uptrend, but one group that definitely deserves watching is semiconductors ($DJUSSC). On the chart below, you can see that the DJUSSC bounced in early October off of a critical trend support line:...keep reading

20 day EMA, 50 day SMA and short-term price resistance all converging near 15.50 and taking its toll on SAPE today....keep reading

I consider reversing candles IF they occur after a lengthy trend. And if a key price support/resistance level is tested simultaneously, all the better! There were plenty of reversing candles on Thursday as U.S. equities were very weak in early morning trading, but came to life in the afternoon session. Procter & Gamble (PG) is a defensive stock that had finished lower for 9 consecutive trading days:...keep reading

The gains made on Thursday in U.S. equities was of a historic level. The NASDAQ surged 7.35% yesterday, its best day since 2020 and one of its best days ever. It actually tied for 14th place all-time in terms of percentage gains. Its 760.97 point gain was the highest EVER. Now before you go placing buy orders, thinking this is the resumption of the secular bull market, keep something in mind. Of the top 13 biggest percentage gains in NASDAQ history, 12 of them occurred during established bear markets. I'm not trying to downplay the significance of yesterday's rally, because it was BIG technically. Rather, I'm just looking to remain objective. Here's what the QQQ now looks like:...keep reading

This will be an interesting week for sure. First, it's options-expiration week, or as I like to call it, "Opposite George" week, a Seinfeld reference. We tend to see a bit of whipsaw as monthly options expire. Strong stocks with lots of net in-the-money call premium can see weakness, while weaker stocks with net in-the-money put premium can see strength....keep reading

Little volume as it continues to push higher with an ugly long-term negative divergence. May be a price to pay at some point, but not right now....keep reading

As most of you are probably aware by now, I'm a BIG fan of relative strength. I prefer trading stocks of leading companies within leading industry groups. If I were to trade outside of these basic parameters, my focus would absolutely turn to critical support, whether it be a key moving average, major price support, a trendline, etc. PagSeguro Digital (PAGS) is a software company that closed on Thursday literally right on price support from throughout 2022:...keep reading

One of the most difficult things to do in the stock market is evaluating a downtrending stock for a potential bottom. We can see certain patterns like double bottoms or reverse head & shoulders patterns. Perhaps there's a positive divergence. Maybe we'll even see an exhaustion gap. But nothing works better than simply seeing prices begin to trend higher, while key technical support levels hold. Let's look at Mohawk Inds (MHK), a furnishings company:...keep reading

It's generally nice to see multiple reasons to buy a stock. If a stock is testing its 50-day SMA, then those who like buying on 50-day tests will be interested. If a stock has consistently bounced off of a key level of price support, then those interested in buying price support tests will be interested. If a previously-rising stock stalls temporarily and the RSI dips back into the 40s, those awaiting pullbacks will likely be interested as well. But what if a stock is doing all of those things simultaneously? Enter Flex Ltd. (FLEX):...keep reading

I consider the start to earnings season to be the day that JP Morgan (JPM) and a few other large banks report their quarterly results. That date this quarter will be this Friday, October 14th. I'm not expecting great quarterly results this quarter by the banks, nor most other industries, but the question in my mind is......has all the negative news already been priced in or do we have further to drop? While I was bearish until mid-June, I am now on the long side, so I think I've answered the question...keep reading

There's not a lot that's going right for U.S. equities right now. Treasury yields are soaring and that's putting a lot of pressure on stocks, especially growth stocks. Throw in the bearish seasonal period and it might be best to avoid stocks altogether. Still, as stocks fall, they become increasingly attractive, especially if they drop to a MAJOR price support level....keep reading

Potential reversing candle (bearish engulfing) today, so perhaps we'll finally see some selling here. This one never hit our entry points, but if you're holding, you might consider at least taking partial profits....keep reading

Date Added: 10/4 Market Cap*: $2.290 EPS Actual: $1.24 EPS Estimate: $0.95 Revenue Actual*: $2730.0 Revenue Estimate*: $2720.0 T...keep reading