EB Digest continued

I love this time of the calendar quarter. It's the busiest week of earnings season, but it's not just the companies that are reporting this week that I'm interested in. At EarningsBeats.com, we keep a Strong Earnings ChartList (SECL) for a reason. It's a Watch List that organizes companies that report solid earnings throughout the quarter. To earn their way onto our SECL, companies must beat Wall Street consensus estimates as to both revenues and EPS. They must also be liquid (daily share volume > 200,000 shares) and looks solid technically. ... keep reading

Sonos, Inc. (SONO) is a $1.46 billion consumer electronics company, headquartered in Santa Barbara, CA. It's been downtrending this year since peaking in March 2024. Over the past few months, SONO has made a move higher to challenge overhead gap resistance, but it's been unable to break through (red arrow). Its AD line, though, is powering to new highs, despite a lackluster price chart (bottom panel): ... keep reading

Most companies see their stock market valuation go up or down based on what they do or don't do. Sometimes, however, companies will benefit when another company fails to impress. That's exactly what happened last week as Tesla, Inc. (TSLA) held its robotaxi event. Investors treated it as though it was a dud, sending TSLA's shares reeling. The TSLA event and weakness, though, turned out to be reason to party at Uber Technologies (UBER), as you can see below: ... keep reading

Could an answer be "BOTH?" First, the chart I'm referring to belongs to Wabtec, Inc. (WAB). From a bullish perspective, WAB shows excellent volume trends. Also, the AD line is nearing another 2024 high. Relative strength was very strong back in April and May, but it did cool down for several weeks before turning higher again in August and September. Take a look at these bullish technical traits: ... keep reading

I've discussed the fact that financials (XLF) LOVE the balance of the year. In fact, the XLF averages outperforming the S&P 500 by a wide margin from September through December. How much? Well, it depends on the time frame we're looking at. Check this out: ... keep reading

The good news with price support holding four times is that we can say that buyers have consistently jumped in and supported a stock's price at that level. The bad news is that support will eventually give way and, if it does, a selloff could accelerate very quickly. ... keep reading

One consistent theme in the stock market over the past few years is that small caps simply have NOT been the place to invest. Many stocks in this asset class have been hot from time to time, but most seem to come up short when it comes to staying power. EverQuote, Inc. (EVER) is one of those stocks that's been red hot for nearly a year, but has fallen hard since its peak above 25 just 6 weeks ago: ... keep reading

When price action moves higher, but momentum oscillators don't follow suit, it's referred to as a negative divergence. It's a signal that momentum is slowing or stalling and that we should consider a potential top in price. While the textbook definition is very easy to interpret on the surface, we also need to make sure we use a healthy dose of common sense. After all, if a stock breaks out to a new high on massive volume, but a momentum oscillator lags, is it really a sign of slowing momentum? On Tuesday, Apple (AAPL) soared on AI news, closing at an all-time high above 200.00 and producing one of its highest volume days since the 2020 pandemic: ... keep reading

I'm not sure I have the definitive answer, but I did find a stock that's facing this question right now. Applovin Corp (APP) is one of the best software stocks ($DJUSSW) currently, as it's relative strength line has been soaring since mid-February. APP's AD line has also ripped higher, suggesting plenty of accumulation has taken place in the stock. But what do we make of the $DJUSSW:$SPX relative strength line tumbling during this same period of relative strength for APP? ... keep reading

On Wednesday, I provided you an example of how retail traders are manipulated with respect to Apple, Inc. (AAPL). AAPL promptly exploded on Thursday, gaining 4.3% and finishing 3rd out of 500 stocks on the S&P 500. Volume surged to more than 91 million shares and it was the biggest hollow candle (biggest % gain from open to close) since February 3, 2023. Well, this type of manipulation is not an isolated situation. Ready to take a look at Tesla, Inc. (TSLA)? ... keep reading