EB Daily Market Report - Friday, October 9, 2020

Tom Bowley - October 09, 2020

Special Note

Today's DMR will be abbreviated. I've written two articles at StockCharts.com this morning, one for ChartWatchers and the other in my Trading Places blog. I've provided you links to both articles below.

Also, don't forget to join me and Grayson Roze at 11am ET tomorrow morning, if you're available. It should be a great webinar as we discuss the combination of the tools and features at StockCharts and those at EarningsBeats. Here's a link to the room tomorrow:

https://us02web.zoom.us/j/87945264831

Executive Market Summary

Futures were solid overnight and our major indices are on the rise again today
The NASDAQ is showing leadership and the IWF:IWD ratio (growth vs. value) is moving up as well
Sector performance is quite bullish with technology (XLK, +1.19%), consumer discretionary (XLY, +1.13%), and communication services (XLC, +1.01%) on top of the leaderboard
8 of the 11 sectors are higher, with energy (XLE, -1.21%) failing to sustain its recent strength
Despite energy's weakness, renewable energy ($DWCREE, +3.51%) is rebounding today after a rough Thursday
Software ($DJUSSW, +1.81%) is helping to lead technology higher
Advanced Micro Devices (AMD, -4.38%) is reportedly in advanced talks to acquire Xilinx, Inc. (XLNX, +13.60%); XLNX is today's top S&P 500 performer

Market Outlook

I believe everything is lining up for a major move to the upside later this year and into 2021. That's the topic of my ChartWatchers article this weekend, which I just published. CLICK HERE to view the article.

Sector/Industry Focus

I featured transports in my Trading Places blog earlier this morning. Here's a LINK to the article.

ChartLists/Strategies

Here are 2 Income Portfolio charts that look interesting to me today:

CHRW (trucking):

Transports ($TRAN) are into all-time record high territory and truckers ($DJUSTK) are beginning to strengthen again. CHRW is one of the leading truckers and I expect will do quite well as transports move higher throughout Q4.

EBAY (specialized consumer services):

Specialized consumer services ($DJUSCS) have broken out and EBAY was a leader until it topped in July. It appears to me that EBAY could be in a position to move higher and begin to lead again. A close above 54 would be the first step and would likely lead to a retest of the July high near 60.

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 a few select 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 you own or are considering owning.

Friday, October 9:

None

Monday, October 12:

None

Economic Reports

None

Happy trading!

Tom