EarningsBeats.com Digest for September 23, 2019
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Dear EarningsBeats Community Members.
Just in case you missed it I wanted to make sure you received a copy of Saturday's webinar so here is a link to the recording:
https://youtu.be/06z_4MK3Csg
Also a reminder that you will see I discuss a Webinar Special that we will honor through tomorrow (Tuesday, September 24) that will save you a lot of money over the course of a year!
At your sevice,
John Hopkins
EarningsBeats.com
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We Should Always Be Planning Ahead
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Broadline retailers ($DJUSRB) were huge relative leaders from Q1 2017 through the middle of 2018. Then after a relative pullback into the second half of 2018, we saw relative strength again throughout the first half of 2019. Now we seem to be consolidating again. My takeaway is this: The group remains solid and is likely to lead again, perhaps as early as Q4 2019. The weekly relative PPO has been slightly below its centerline - as it is now - before, so I wouldn't
necessarily view that as a negative. Consumer discretionary is one of only two sectors (technology is the other) that has broken to fresh all-time relative highs in 2019. So if the DJUSRB can remain above the relative low that it set in late 2018, I'll remain bullish the group. In fact, the closer it drifts to that relative low, the more opportunity I see here. While I wouldn't randomly buy any broadline retailer, I do like the leaders and, in my opinion, that list starts
with Target (TGT), which recently reported blowout earnings. Here's a chart to show all of the above, including TGT's sudden relative strength surge:
As you may have heard, we had a rather impromptu webinar on Saturday as I felt the initial reaction to the Fed's latest policy statement was important enough to share my thoughts with the EarningsBeats.com community. If you attended, I hope you enjoyed it. For those that didn't attend or were unable to attend, it would be worth your while to listen in
to the recording. It's a little more than an hour, but I talked about market manipulation, which was quite apparent to me in the latter part of last week. I suspect it could continue into this week as well. We'll see. But the more important longer-term topic was the strength I saw in various industries from the post-Fed low on Wednesday afternoon through the early Thursday morning high - just before the manipulation began kicking in.
I'm sure I'll have plenty more to say in the coming weeks via the EB Daily Market Report (DMR). I completely revamped that report when I returned to EarningsBeats.com as its Chief Market Strategist last week. We're providing samples of the DMR and you can check it out HERE.
Happy trading!
Tom Bowley
Chief Market Strategist
EarningsBeats.com
Better Timing. Better Trades.
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