EB Daily Market Report - Tuesday, May 21, 2024
First of all, Happy Birthday to ME! :-)
Today's report will be abbreviated as I'm heading to the golf course early this afternoon to play for the first time since my trip in late April in celebration of my 63rd trip around the sun.
I want to thank all of you for your loyalty and support over these past 20 years in business. It's been quite a journey and I know many of you have been with John Hopkins and I since the very beginning. But no matter how long you've been a member, from 2004 or just now trying us out for the first time, we really do appreciate you.
As we at EarningsBeats.com celebrate 20 years in business, I'd love to hear what EarningsBeats.com means to you or has meant to you. What stands out? Is it our market guidance? Do you simply appreciate learning all the lessons I've passed on (that cost me a lot of tuition, by the way lol). Is it our thirst to provide top-notch research? Maybe it's the community that we've built over the years? More specifically, what's your favorite part of our business? Daily Market Reports? The new Weekly Market Report that we started less than a year ago? Do you find that our ChartLists have helped you better organize your trades and your trading strategies? In other words, are you a more successful trader since you became a part of our community? I'd love the positive feedback, along with any constructive criticism you might have. I will assume it's ok to use your feedback on a public page, showing your first name and last initial. If you have a problem with that, just let us know, and we will exclude it. Send anything you'd like to share to "[email protected]".
This would be the best birthday gift I could receive from you. :-)
Spring Special
This is the time of the year that we try to give back to our members. We know we're not the cheapest service, but we also know how hard we work and believe we're worth the price of admission. Our Spring Special is our very best deal of the year, bar none. You will not get a better price from us. This is it. Our Spring Special ends at midnight on June 2nd, so I'll be reminding everyone often over the next two weeks about our Spring Special right through its conclusion. We want you to take advantage of our very best deal.
For more information on our Spring Special, CLICK HERE.
Brief Market Update
I have little left to say about this secular bull market. Sure, we'll have pullbacks from time to time. We cannot avoid those. But this secular bull market is FAR from over. Please remember that mainstream media does NOT have your best interest in mind. They are looking out only for themselves and may have an agenda that is not apparent. Big Wall Street firms have market making units that make more money when you make poor trades. So shouldn't we at least be questioning their intentions when their "analysts" talk about what WE should be buying and selling?
Anyhow, our major indices are fairly close to the flat line with the Volatility Index ($VIX) remaining quite low, currently at 12.14. 5 sectors are higher, 6 lower. Financials (XLF, +0.29%) and technology (XLK, +0.25%) are our leaders, while industrials (XLI, -0.47%) and real estate (XLRE, -0.35%) are our laggards.
Finally, in my Trading Places LIVE show this morning, I spent 15 minutes explaining why weakness in some of my sustainability ratios is not concerning me and why it's different than late 2021 when many of these same signals triggered me to say "bear market ahead". This is a MUST watch. It's from roughly the 25-minute mark until the end - probably 15 minutes in all. I have received MANY questions over the past month or two, so I used this morning's show as an opportunity to provide each of you with a detailed explanation why now is so much different than late 2021 heading into 2022. It's apples and oranges folks. Be sure to check that out. Here's the VIDEO.
Swing Trade
I wanted to share with you one trade that I just executed - a buy on LIVN. It's a stock that I strongly considered in one of our portfolios. It had a beautiful gap higher after earnings and continued moving up. It's seen some profit taking, however, and now resides on its 20-day EMA and just above MAJOR gap support. Check out the chart:
I love the heavy volume to accompany the earnings-related gap higher, then the less-than-average volume that's accompanied the recent selling. A very weak medical supplies group ($DJUSMS) has contributed to LIVN's weakness as well. I'm looking for all that to turn. The two support lines that I've drawn typically provide EXCELLENT support in these situations. I've gone long today and will add just above gap support at 59.90 and possibly one final time in the low 59s. I'll use the bottom of gap support as my swing trade CLOSING STOP. I see an initial target close to 70, then in the 76-77 area.
Happy trading!
Tom