EarningsBeats.com Digest for February 11, 2022
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Join Us For Tomorrow's Event...
The Anatomy of a Cyclical Bear Market
Saturday, February 12th at 10am ET
Given the first month of 2022, it's not too far-fetched to think this could evolve into a cyclical bear market, where the S&P 500 drops 20% or more. How does the current market action compare to previous cyclical bear markets and what should we expect moving forward? Join Tom Bowley, Chief Market Strategist to find out.
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!
Anatomy of a Trade - Parker Hannifin Corp (PH)
A couple days ago, I provided our members at EarningsBeats.com with a "play-by-play" trade candidate. I bought Parker Hannifin Corp (PH) just above the 302 level. They had reported excellent revenue and earnings, raised guidance, and then gapped higher to 337 the morning after they reported. Within 24 hours, PH fell back to just below
300, where it's proceeded to bounce on several occasions. So when it fell back close to 300 on Tuesday, I bought it and then kept EB.com members up to date on the status of the trade. Here's the chart:
I indicated at the time that I thought PH could make another run back to its gap resistance at 337, but any quick move up to test its key 20-day EMA and 50-day SMA (red arrow) would represent an opportunity to snag quick profits. When PH approached both of those moving averages the very next day (Wednesday), I took profits and passed along the info to our members. In a highly-volatile market, I am of the opinion that taking profits quickly is
imperative, because of the whipsaw action. Sure enough, on Thursday, PH lost nearly 3% to close at 304. It was a very quick lesson on how difficult trading can be in this environment. Making money in a crazy environment like this should not be overlooked. It's not easy.
Unfortunately, I believe we'll be dealing with cyclical bear market conditions for several weeks, possibly months. To better understand what we're going to have to deal with, I'm hosting a "An Anatomy of a Cyclical Bear Market" event tomorrow morning. The purpose is to study prior cyclical bear markets, contrasting them with secular bear markets, so that we can better prepare for what lies ahead. I hope you can join me for this highly
educational event!
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Tom Bowley
Chief Market Strategist
EarningsBeats.com
Better Timing. Better Trades.
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