EB Daily Market Report - Friday, April 3, 2020
Good afternoon!
I just wanted to send a quick note out this afternoon to let you know that we had an extended 2-hour WAR Room, inviting everyone in our EarningsBeats.com community. If you were unable to attend, I'd encourage you to check out the recording later today. We're hoping to have it ready and available by 5pm EST. The purpose of the special event was twofold: (1) to announce that we'll be doing these each Friday for the foreseeable future to help everyone manage this current crisis, and (2) to provide excellent educational materials and strategies to consider given the current stock market environment. I tried to explain my approach to the stock market during unsettling times such as these, plus provided my analysis of the current landscape. This WAR Room included:
(1) Perspective: I took a trip down memory lane, reviewing the past 100 years in the stock market, pointing out that times like these create opportunities of a lifetime.
(2) Sentiment Analysis: The VIX and equity only put call ratio ($CPE) help us to mark very important market tops and bottoms.
(3) Deep Dive Comparisons: I looked at the 2008 and 1987 market meltdowns to help us understand the nature of these panic-induced selloffs.
(4) Signs of Accumulation: I gave a brief tutorial on the accumulation/distribution line and its value vs. on balance volume during volatile periods.
(5) Strong Earnings ChartList: I announced that we've added one additional filter to our process - the accumulation/distribution line.
(6) Sector Rotation: I described the sector rotation that's taken place and identified the best areas to consider trading.
(7) Trading Strategies: I began to delve into possible trading strategies using the Strong Earnings ChartList and scanning techniques.
I will be working this weekend to complete an updated Strong Earnings ChartList and I also have aspirations to set up an Accumulation/Distribution ChartList that features many of the best trading candidates as we move forward. My plan is to have links available for our members by Monday morning (earlier if possible) so that you can download these ChartLists into your account. I'll be referring to both of these lists quite a bit in the coming days on Trading Places LIVE, in my Trading Places blog, and in our Daily Market Reports (DMRs).
The bottom line is this is just the start for us on Fridays. Because many of us are confined to our homes, it's a great opportunity for our EarningsBeats.com community to gather once a week to identify some great opportunities in the days and weeks ahead. I hope you'll be able to join us on future Fridays!
As far as the market goes today, our major indices are lower by roughly 2.25% with just under 1 1/2 hours to go to close out another week. Holding stocks over weekends has proven to be a losing proposition, although we never know how this Monday might turn out. Perhaps we'll get some good news over the weekend for a change.
I want to wish everyone a great weekend. Please be safe and as always....
Happy trading!
Tom