EB Daily Market Report - Brief Update - Tuesday, June 18, 2024
A few quick things before I provide a brief market update:
ChartLists Updated:
I've updated the following ChartLists, so feel free to download or view them from our website:
- Strong Earnings (SECL)
- Strong Future Earnings (SFECL)
- Raised Guidance (RGCL)
- Short Squeeze (SSCL)
These ChartLists were updated as of Tuesday morning. There are few earnings to be released over the balance of the week, so I will NOT be updated ChartLists again on Friday as it makes little sense. Instead, the next updated ChartLists will be provided next Friday, June 28th.
New Schedule:
Beginning Monday, June 24th, here are changes that will be taking place at EarningsBeats.com:
Trading Places LIVE on YouTube:
I have been contacted by StockCharts.com to host a weekly show on Thursdays, beginning June 27th. I'll be recording these shows between 11am and 12pm ET, to be produced and uploaded by StockCharts to THEIR YouTube channel between 1pm-2pm ET. Be sure to check it out.
On Wednesdays, I'll be spending much more time preparing for our 10am ET Live Trading Room. As a result, we will be eliminating our Wednesday Trading Places LIVE show
Our Tuesday Trading Places LIVE will continue as is, though it may be shortened slightly so that I complete that LIVE streaming show before the stock market opens each day.
FREE EB Digest Newsletter:
Fridays have become increasingly busy for me, so we will provide EB Digest articles on Mondays and Wednesdays.
Other Shows:
I will continue to record our EB Weekly Market Recap videos every weekend, except for weekends when I'm out of town or traveling. I will also record short impromptu videos throughout the week as I see fit. I may want to comment on an economic report, a sentiment change, seasonality, individual stocks, or even react to others producing videos that I agree or disagree with. These short videos will not be provided on any certain day or at any certain time. They'll generally be time sensitive, so be sure to SUBSCRIBE (and turn notifications ON) to our YouTube channel to make sure you don't miss any of these videos.
Max Pain Event
We will be hosting our regular max pain event at 5:00pm ET this afternoon. Room instructions either have already been sent or will be sent separately. We do record these events, so if you can't make the event live, no worries. But I hope to see you there!
Brief Market Update:
May retail sales were below forecasts (+0.1% vs. +0.3%), which was a slight disappointment for the economy. However, May industrial production surged way past estimates, rising 0.9% (vs. +0.3% expected). The bond market saw buyers, though, not sellers, with the 10-year treasury yield ($TNX) dropping 7 basis points from this morning's high, threatening to close beneath 4.20% for the first time since March.
Our major indices haven't changed much with small (IWM, +0.42%) and mid caps (MDY, +0.37%) leading the charge after once again underperforming at the opening bell. Yesterday, we saw a reversing bullish engulfing candle on the IWM, which has led to today's relative strength:
I like the fact that the IWM continues to find support near this gap support level. But one thing that needs to improve is the AD line. We've seen that indictor strengthen on many of our key indices, but not here. To strengthen here, we'll need to see solid volume and afternoon strength....consistently. That consistency has been lacking badly.
Technology (XLK, +0.03%) is not providing leadership today, perhaps because we're nearing June monthly options expiration. Many times we see the worst sectors begin to show leadership into options expiration week as there are fewer in-the-money call options on weak areas. Check out today's leaderboard and note that 2 of the top 3 sectors today have the lowest SCTR scores:
Meanwhile, the two highest SCTRs belong to the XLK and communication services (XLC), with the latter the worst-performing sector today.
Enjoy the rest of your day!
Happy trading!
Tom