November 2023

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Reminders

I want to answer a couple questions that I receive periodically.

Question 1: Why did I not receive the Daily Market Report (DMR) before today's close?

Answer: Yesterday, I sent out a brief DMR at 3:30pm ET. John Hopkins told me he didn't receive his until after 6pm ET. I still haven't received one in my personal email. We've been in contact with our email server to resolve. In the meantime, always remember that after I send out the DMR, it gets posted to our website. So when you log in to your EarningsBeats.com account, click on "EB Daily Market Report" and you can find the report there. I usually post there within a minute of sending out the DMR via email. If you haven't received the DMR by 3:50pm, you might check on our website.

Question 2: I can't find the Weekly Market Reports on your site. Where can I find it?

Answer: They are filed under the EB Daily Market Report, because technically it's our Monday DMR. We call it a Weekly Market Report, because it's longer-term in nature, taking a step back to view the stock market with some perspective. Here's a helpful tip, however. When I receive this EB Weekly Market Report in my personal email, I "file" it in a separate folder. That way, I can access all prior WMRs very easily and timely.

December Seasonality

The December report will be out on Friday, but I wanted to provide you a list of several stocks that historically have performed well during the month of December. I have not selected the actual list of 20 stocks for the report yet, but wanted to let you know some of the top performers before the month actually starts.

Here are 8 stocks that typically like the month of December and they'll likely be on our Final 20 provided in our December Seasonality Report, which will be provided tomorrow:

• WDC
• AVGO
• BLDR
• STX
• LLY
• VTR
• ARE
• CF

ChartLists Updated

Thank you so much for your patience, but I was finally able to update our Raised Guidance ChartList (RGCL). In addition, the following ChartLists were also updated:

• Strong Earnings (SECL)
• Strong Future Earnings (SFECL)
• Bullish Trifecta (BTCL)

You'll find the new links to view/download on our website now.

Executive Market Summary

• Futures were higher overnight and we saw that carry over to the opening bell
• The Dow Jones is, by far, the best index today as 23 of the 30 component stocks advance
• Salesforce.com (CRM, +8.48%) is flying higher after surpassing both revenue and EPS estimates; the real bonus, however, was that revenues and EPS were raised significantly for Q4 and 2024
• Commodities are mostly lower as crude oil ($WTIC, -2.31%) reverses hard from $79 per barrel this morning to $76 per barrel this afternoon
• Energy (XLE, +0.44%) remains in the middle of the sector leaderboard, despite the big reversal in crude
• Today is all about value stocks as health care (XLV, +0.95%), materials (XLB, +0.85%), financials (XLF, +0.85%), and industrials (XLI, +0.83%) show leadership
• Meanwhile, our three aggressive sectors - communication services (XLC, -1.15%), consumer discretionary (XLY, -0.44%), and technology (XLK, -0.32%) are the only three sectors in negative territory
• The typical December rotation from growth to value stocks may be starting right before our very eyes

Market Outlook

Strength in health care (XLV), financials (XLF), and industrials (XLI) are helping to lead the Dow Jones to a powerful surge today. The Dow is clearing its summer high, with only its all-time high remaining as key price resistance:

Sector/Industry Focus

The best-performing industry group in financials right now is asset managers ($DJUSAG). They've broken their downtrend line that began just prior to the 2022 cyclical bear market:

It also appears that plenty of accumulation has taken place over the past year and a half. The AD line is poised to break to another all-time high - likely when the DJUSAG clears overhead price resistance established early in 2023.

ChartLists/Strategies

I recently shared a potential short squeeze stock, TG Therapeutics (TGTX). It's continued to push higher, but I don't believe any sort of squeeze has kicked in just yet. We have yet to see a day where volume clears its average volume by any discernible amount:

TGTX:

I've remained in a small position, waiting for volume to explode to add a bigger position. It just hasn't happened. Today's candle is a bit ominous - a shooting star. I'll likely reduce my position even further at the close. The AD line, with today's candle, is quite likely to take another drop, barring a strong finish.

Earnings Reports

Here are the key earnings reports for the next two days, featuring stocks with market caps of more than $10 billion. I also include notable companies with market caps below $10 billion. Finally, any portfolio stocks that will be reporting results are highlighted in BOLD. If you decide to hold a stock into earnings, please understand the significant short-term risk that you are taking. Please be sure to check for earnings dates for any companies that you own or are considering owning.

Thursday, November 30:

RY, TD, DELL, MRVL, CM, KR, ULTA, IOT, PATH, ESTC, AMBA

Friday, December 1:

None

Economic Reports

Initial jobless claims: 218,000 (actual) vs. 211,000 (estimate)

October personal income: +0.2% (actual) vs. +0.2% (estimate)

October personal spending: +0.2% (actual) vs. +0.2% (estimate)

October Core PCE price index: 3.5% (actual) vs. 3.5% (estimate)

Happy trading!

Tom