About 30% of the S&P 500 reporting, and 10 Dow components posting quarterly results this week. Of the 93 S&P 500 companies that have reported so far, only 53% have topped Wall Street consensus revenue estimates, compared with a four-year average of 59%. Earnings are also running light. Of the companies that have reported so far, 69% have topped the earnings consensus, compared with a four-year average of 73%. Fourth quarter guidance is also lower than the four year average.
Bottom line? Doesn’t matter.
Sure earnings are important, but I’ll take global printing presses running 24/7 any day of the week. That’s the real reason this market keeps tagging new highs. We probably wont get a clean economic number until December because of the shutdown and the threat of the shutdown that proceeded it. The economy has acted liked a bunch of drunks walking in traffic the last two months because of the uncertainty factor. Stall speed.
Momentum names are still on fire with the exception of $TSLA, which probably means it will blast through $200 soon. It’s been dart throwing season, but it will get tougher now.
Here are some setups that aren’t up a billion percent already that have upside.
$FCX has been so hated but the daily chart is improving as the MACD has turned up. Right now it s right at some lateral resistance but a move above the 25 area with volume can get it to break out of this range.
$CNX is clearly the best acting name in the coal space. It’s working on its third bull flag. Watch the 38.50-39 level with volume for higher prices.
$FXEN – Ive talked about and recommended the small oil plays over the last few weeks here. Names like $PVA , $MILL and $CPE have been stellar. This stock is right at lateral resistance and the 200 day moving average right now. Through those levels it will break out.
$TSS is flagging for higher prices. Watch for a breakout soon but only with good volume.
Come on by for a free trial and get the Sunday video later with in depth analysis and more specific set ups. Here are some exits that subscribers took on Friday.
STNG…selling 1/2 +12.5%, WTW selling 1/2 +5.2%, WAG selling 1/2 +3.5%, STX selling 1/2 +7.8%, CVX selling 1/2 +2.6%, RP selling 1/2 + 7.9%, TTHI selling 1/3 +15.6% , GILD selling 1/3 +10.3%