EarningsBeats.com Digest

Published: Fri, 10/11/19

EarningsBeats.com Digest for October 11, 2019

Dear EarningsBeats Digest Member.

Sneak Preview Webinar

Four times a year we have our "Quarterly Earnings Webinar" where we take a deep dive into companies that have already reported and companies who will be reporting their numbers. And with our next event coming up in just over a week we want everyone to join us for a "Sneak Preview" of what will be covered when we conduct our Q3 Earnings Webinar on October 21.

As a member of the EarningsBeats.com community you are invited to attend this event next Monday, October 14, 4:30 pm eastern where Chief Market Strategist Tom Bowley will discuss the methodology behind zeroing in on potential winners and losers and how to identify entry, target and stop loss levels on those companies that beat top and bottom line expectations and have promising technical charts. There's no need to register for this event; you will be sent room instructions on Monday prior to the start of the webinar. And the webinar will be recorded for those of you unable to attend the live event. Hope to see you there!

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Looking for Industry Character Change

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It was in the past 1-2 weeks that I spotted footwear stocks ($DJUSFT) breaking out on both an absolute and relative basis. Prior to that, it was home improvements ($DJUSHI). And before that, defense stocks ($DJUSDN) became relevant again. If we were to go back a year or so, it was home construction ($DJUSHB) that reversed its downtrend and produced great trading candidates. The list goes on and on. Currently, the durable home products group ($DJUSHD) is the one to watch. Its relative strength is building, but we're still awaiting an absolute breakout:

We've seen the relative PPO turn positive, which is definitely a solid technical development, but the resistance level near 240 has yet to be cleared. Also, relative price action has cleared both moving averages, but the 20 week EMA has yet to clear the 50 week SMA. So while there are solid bulish technical developments taking place, there's more work left to do. Helen of Troy (HELE) is a stock in this space that has posted excellent quarterly earnings results, gapped significantly higher, but has pulled back and possibly created a solid entry. The confidence in that trade increases if the overall industry group can make the breakout above 240.

Happy trading!

Tom Bowley

Chief Market Strategist

EarningsBeats.com
Better Timing. Better Trades.