EB Daily Market Report - Monday, April 19, 2021
Special Event - Model ETF Portfolio "Draft"
At 5:00pm ET this afternoon, I'll unveil our next Model ETF Portfolio and explain the rationale for the selections. If you'd like to join me for this event, simply click on the room link below (the room will open at approximately 4:30pm ET, 30 minutes before the webinar starts):
https://earningsbeats.zoom.us/j/82026181632
ChartList Update
The following ChartLists were updated over the weekend and can be downloaded from our website (Stock ChartLists page):
- Strong Earnings ChartLists #1 and #2 (SECL)
- Strong Future Earnings ChartList (SFECL)
- Raised Guidance ChartList (RGCL)
- Upcoming Earnings ChartLists (5 that cover every day this week)
In addition, I think we've finally resolved the issue with our Strong ETF ChartList (SETFCL). The link is up again on our website. I've been able to download without any issue. If you do run into a problem, make sure you refresh your browser and try again. If you're still having problems, let us know. And THANK YOU for your patience. StockCharts.com was working hard to help us and were finally able to locate the root of the problem earlier today.
Brief Market Update
Because of the time-consuming work prepping for today's webinar, I'll simply give you a very brief update on today's action:
It's the Monday after options expiration, which tends to be very weak historically. It is THE worst day of the calendar month historically. Those that exercise their call options at the close on options expiration Friday put market makers on the defensive and in a short position. In my opinion, this is why the Monday after options expiration provides such negative action historically. This fact is not based on the past couple months or even years. This is something that dates back to 1950 on the S&P 500 and 1971 on the NASDAQ. These Mondays do not always close lower, but they have more of a tendency to do so than any other day of the calendar month. It's generally not a great idea to buy right ahead of these days.
Our major indices are all lower with the NASDAQ and small caps ($SML) the two worst performing indices, dropping 1.12% and 1.15%, respectively. It's quite clear that traders are defensive today. It just takes one quick glimpse of the sector leaderboard:
Three defensive groups are leading today, while the three most aggressive groups are all on the bottom of the leaderboard.
Economic Reports
There were no economic reports of significance out today and none are expected until initial jobless claims are released on Thursday morning.
Earnings Reports
The pace of earnings reports will begin to quicken over the next few weeks. UAL and STLD (portfolio stock) report later this afternoon, then tomorrow's earnings slate is highlighted by JNJ, PG, NFLX*, LMT, ISRG*, CSX*, and TRV. Those ticker symbols with an asterisk (*) will be reporting AFTER the market closes tomorrow. The others will report Tuesday morning.
Happy trading!
Tom