EarningsBeats Digest

Published: Fri, 05/20/22

EarningsBeats.com Digest for May 20, 2022

Knowing Historical Trends Will Make You A Better Trader

Tuesday, May 24th at 4:30pm ET

About This Event: Tom Bowley, Chief Market Strategist, has been tracking daily S&P 500 performance since 1950. Given his background as a former practicing CPA, Tom has spent years analyzing this data to better understand historical tendencies to improve his trading success. In this information-packed webinar, you'll learn:

To differentiate between strong and weak historical periods
To assess the psychological implications of history
To understand the impacts of historical performance on bull versus bear markets
To use all of this information to generate higher profits

This is a FREE event for members, including those on trial. Click below to join our FREE 30-day trial and reserve your seat. The event will be recorded for those unable to attend live.

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Retail Looks To Have Much Further Downside

After a sparkling move higher after the 2020 pandemic, the highly-diversified XRT (retail ETF), has run into big troubles. Back in the middle of 2020, the XRT cleared overhead price resistance established in 2018 and the group exploded higher. This absolute price breakout occurred simultaneously with the relative breakout vs. the benchmark S&P 500. Here's a look at the chart:

Since breaking below both the 20-week EMA and 50-week SMA in December 2021, selling has accelerated and the selling has been accompanied by increasing volume. There appears to be mass distribution taking place. This type of selling in the retail area reeks of a looming recession. Wall Street doesn't exit a group in this fashion without reason. And it's not just retail, by the way. Nearly every consumer discretionary industry group right now is declining relative to the S&P 500. In other words, Wall Street is selling discretionary stocks in a big, big way. Until this reverses, expect more of the same - heavy selling in the retail area until perhaps the breakout level just below 50 is tested.

Happy Trading!

Tom Bowley
Chief Market Strategist

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