EarningsBeats.com Digest

Published: Fri, 10/18/19

EarningsBeats.com Digest for October 18, 2019

Dear EarningsBeats Digest Members.

Special Event this Morning!

Join Tom Bowley and Mary Ellen McGonagle, President of MEM Investment Research, for a special presentation this morning from 9-10 am eastern. Mary Ellen was a regular Friday guest on MarketWatchers LIVE, StockCharts TV's flagship show hosted by EarningsBeats.com's Chief Market Strategist, Tom Bowley. Tom and Mary Ellen provided excellent technical analysis during their Friday shows together and now Mary Ellen is joining Tom right here at EarningsBeats this morning. This special webinar will be held for one hour and will feature stocks that interest Mary Ellen and Tom based on their performance and technical setups.

The room will open this morning at 8:30 am: https://zoom.us/j/293595397

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Sticking with the Trend into Earnings

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Yesterday, Textron, Inc. (TXT), from an aerospace industry ($DJUSAS) reported its latest quarterly results. They came up short on revenues, but handily beat EPS estimates, $.95 vs. $.85. You'd think that type of earnings beat would be rewarded when the stock market resumed trading. But instead, TXT lost 5.39% and remains trapped in an overall downtrend:

I'm not a fan of holding companies into their quarterly earnings reports, especially when a chart shows no uptrend in play and relative strength is weak. TXT has been downtrending vs. the S&P 500 throughout 2019 and that's a clue. Wall Street is not accumulating shares, at least not relative to others within the S&P 500. Aerospace had shown relative life in August and September, but it's beginning to downtrend again vs. the benchmark S&P 500. Until we see a "character change" on the chart, I'd avoid stocks like TXT.

Happy trading!

Tom Bowley

Chief Market Strategist

EarningsBeats.com
Better Timing. Better Trades.