EB Daily Market Report - Friday, November 1, 2019

Special Note

Today's DMR will be very brief as I'll be out most of the day.

First, mark your calendar for Monday night as we're adding another educational, earnings-related webinar to our event calendar. This will be a free event for members and we'll send everyone a link on Monday to attend the event. As always, it will be recorded and available for your review if you're unable to attend. Last Tuesday night's event was well-received, the results of the companies discussed were fantastic after earnings were released (average next-day gain was 3.5%), and so I'll find another batch of companies to consider. If you attended last week or watched the recording, I'd love to get your feedback of what you thought and whether relative strength analysis is changing your view of how you approach earnings season. I'd love to use your comments as potential testimonials (without providing any last names), so just let me know if you'd prefer that we not use your comments for that purpose. Share your thoughts with me at "[email protected]". Again, I'd really love to hear your thoughts.

Here are a few things to consider for today:

October Nonfarm Payrolls

They easily topped expectations, 128,000 (actual) vs. 90,000 (estimate). But the best news was that September's nonfarm payrolls were revised higher from 136,000 to 180,000. Futures immediately spiked on the news and are solidly green this morning. I expect we'll see another all-time record high close today.

October ISM Manufacturing

Remember the horrific September number that spooked everyone and stirred up the latest recession talks in the media? It was 47.8 and any reading below 50 signals economic contraction. The October number is expected to come in at 49.3 and will be released at 10am EST. If you see the market move big in either direction after 10am, you might want to check out this report.

German DAX ($DAX)

The DAX is up 95 points, or +0.74%, this morning and rapidly approaching 13,000, a number it hasn't seen in 18 months.

S&P 500

We're literally in blue sky territory. The bullish ascending triangle continuation pattern that I've provided here in the DMR in recent weeks measures to 3225 and I believe we'll get there by year end, possibly higher. Stay the course.

I want to wish everyone a great weekend and I'll be back on Monday with the regular DMR.

Happy trading!

Tom Bowley, Chief Market Strategist
EarningsBeats.com

"Better Timing.  Better Trades."