EarningsBeats.com Digest for September 20, 2019
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Dear EarningsBeats Digest Members:
You will see in Tom's article below that he will be conducting a Special Webinar tomorrow, Saturday, September 21, 11 am eastern, to discuss how the market tends to react once a Fed rate decision is in. VERY TIMELY! This is a FREE event open to everyone and we will send you Zoom room instructions tomorrow morning. As usual the event will be recorded for those of you unable to attend the live event. In addition, we've got a LOT of exciting events
coming up between now and year end! Just click on the Calendar Link below to check it out. This calendar feature is new and a work in progress so watch for fine tuning and future events!
https://www.earningsbeats.com/public/Event-Calendar.cfm
Hope to see a LOT of you tomorrow!
At your service,
John Hopkins
EarningsBeats.com
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Truckers Have Shifted To A Higher Gear
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We'll likely see a lot of back and forth action now that the latest Fed meeting is out of the way. We still have one of the worst historical weeks of the calendar year staring us directly in the eyes. It begins today and lasts through the September 26th close. It doesn't provide us any guarantee of lower prices. Rather, it's simply smart to be aware of this tendency and not to overreact to a period of selling or consolidation. We all know that one or two days of selling
and the media will be predicting its 4th recession of 2019. They may eventually get one right, but it won't be in 2019.
But we have new information after Wednesday's Fed meeting and policy statement and the bond and stock markets are currently digesting it. While we remain beneath critical overhead price resistance and all-time record highs from July, subtle changes have been taking place throughout the summer and Wednesday's post-Fed meeting action confirmed it. I'm speaking of the rapidly improving truckers ($DJUSTK). The best way to quickly evaluate how a group is performing is to simply
chart a ratio of that group relative to the S&P 500. Here's that analysis of truckers ($DJUSTK:$SPX):
I expect that truckers will remain among our leading industry groups into and throughout the 4th quarter. Failure to hold its relative moving averages would be a development where we would need to re-evaluate that strategy. But for now, we should be thinking to trade the best truckers on any pullbacks to key support levels.
The developments surrounding the bond and stock markets' reactions to Wednesday's Fed policy statement are significant enough that we want to share our thoughts as we near the closeout of Q3 and to provide some guidance heading into Q4. Watch for room instructions to a Saturday morning webinar (likely 11am EST), which will be sent out on Saturday morning. If you can't make the webinar live, no worries. We'll record it and send it out to our entire community later this
weekend.
Happy trading!
Tom Bowley
Chief Market Strategist
EarningsBeats.com
Better Timing. Better Trades.
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