EarningsBeats.com Digest for February 7, 2022
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Earnings Reaction Portfolio: Sneak Preview
Monday, February 7th at 4:30pm ET
Join Tom Bowley, Chief Market Strategist as he discusses the strategies and selection process for our Earnings Reaction Portfolio, as well as recapping the initial quarter's performance. The next 10 stocks in the portfolio will be selected on Thursday, February 10th at 5:30pm ET.
This is a FREE event and you're invited. You will receive room instructions later today. The event will be recorded for those unable to attend live.
Interested in our events? Check out our February Educational Series that's currently in progress. Last month, we told you that the market would be volatile this year and was heading lower. But now the question is, how much lower? We have a cyclical bear market on our hands and we've designed three specific events to help YOU navigate what will be a very difficult 2022. Learn more below.
Simon Says Earnings Are Likely To Beat Estimates
Many times, earnings are anticlimactic. The moves are already made leading up to earnings reports. It's the old "buy on rumor, sell on news" or "sell on rumor, buy on news". But occasionally a company will show excellent relative strength and then simply consolidate for a period of time, days or weeks, before providing that bullish news
that was anticipated. As I look ahead at next week's companies that report earnings, I believe Simon Property Group (SPG) could be one of those companies. Check out the chart:
SPG rallied significantly from early October through early November. That one-month stretch produced a 35% gain. A period of consolidation to follow is certainly normal. If we use the Fibonacci retracement tool on that one-month advance, the 61.8% retracement of that rally takes SPG to 142.85 (black circle), which is where support has been holding. I would not be at all surprised to see SPG resume its prior rally from this area. I'd
be more concerned with a close beneath 140. Otherwise, I'd be looking for an advance that ultimately takes SPG back to the November high near 170.
Later this afternoon, I'll be hosting our quarterly Earnings Reaction Sneak Preview webinar, highlighting several of the best earnings reports thus far this quarter, specifically those that are accompanied by significant accumulation. It's free and I'd love to have you join!
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Tom Bowley
Chief Market Strategist
EarningsBeats.com
Better Timing. Better Trades.
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