EarningsBeats.com Digest for November 15, 2021
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Trading Places Live!
Join Tom Bowley for a briefing on market activity on Mondays and Wednesdays from 9-9:30 am EST before the opening bell. Click here to listen live or visit our YouTube page later today to view the recorded session.
Upcoming Earnings ChartLists
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Save the Date...
Top 10 Stock Picks
Thursday, November 18th at 7:30pm ET
Join Tom Bowley as he unveils his Top 10 Stock Picks in each of his portfolios - Model, Aggressive, Income, and Strong Accumulation/Distribution (AD) - that he believes will rise significantly over a 90-day period. As of Friday's close, our four portfolios gained an average 11.75% over the past quarter* as compared to the S&P 500 gain of 6.29%. That's nearly double!
This is a members-only event that is open to EarningsBeats subscribers, including trial members. You can sign up for a 30-day NO COST trial by clicking the link below which will guarantee you a seat to the webinar, as well as all of the features of an EarningsBeats membership. Don't think twice!
*Our portfolio quarter began at close, August 19th and ends at close, November 19th.
Plus, our Fall Special is now LIVE through Saturday, November 27th. Sign up for an annual membership and receive a minimum of 2 bonus months - and up to one year bonus! Sign up today.
Lining Our Portfolios With Leading Stocks in Leading Industry Groups
If you've been following EarningsBeats for any length of time, then I'm sure you've heard this mantra before. The way to beat the benchmark S&P 500 over time is to find those dozen or so leading industry groups and search for leading stocks within those industries. So we want to be considering stocks from semiconductors ($DJUSSC), software
($DJUSSW), automobiles ($DJUSAU), specialty retail ($DJUSRS), internet ($DJUSNS), specialty finance ($DJUSSP), transportation services ($DJUSTS), etc. There are also plenty of leading stocks in industries that have struggled a bit, and it's fine to include those as well. But, in the end, the strongest groups are likely to produce the best stocks. In our Earnings Reaction Portfolio that we announced last week, the best earnings reaction that we saw up to that point in earnings
season was Confluent (CFLT), a semiconductor:
Do you see all of those blue directional lines moving higher on the bottom 5 panels of the chart? When you see THAT, you have a leading stock in a leading industry group. Does this mean that CFLT is guaranteed to move higher? Of course not. But many leading stocks are doing so for a reason. By selecting only such stocks for a portfolio, it simply takes a couple of the 10 equal-weighted portfolio stocks to outperform and carry the
entire portfolio for a quarter. That HUGE hollow candle that's highlighted above was the stock market's reaction to CFLT's quarterly earnings report. It gapped higher and then continued being bought throughout the trading day. Market makers, who routinely short opening gaps higher to provide liquidity in the market AND to trade on their own accounts, could not stop the overwhelming demand. Note the huge increase in volume that accompanied that trade. Our goal is
line a portfolio with stocks we believe are leaders. CFLT was one of the ten Earnings Reactions Portfolio stocks that we announced last week.
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Tom Bowley
Chief Market Strategist
EarningsBeats.com
Better Timing. Better Trades.
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