EarningsBeats.com Digest

Published: Wed, 01/15/20

EarningsBeats.com Digest for January 15, 2020

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Dear EarningsBeats Digest Member,

Market Warning Signs - Join us this Afternoon

The market has been on a tear since it bottomed on 10-3-19. Since then it has risen almost non-stop 15%. Now we are seeing some signs that the market could be getting long in the tooth. Accordingly, EarningsBeats.com Chief Market Strategist Tom Bowley will be conducting a members only webinar this afternoon at 4:30 pm eastern where he will share his thoughts with members including where the market could be heading in the near term.

If you are NOT an EarningsBeats.com member and want to take advantage of our January Four Pack Special that includes entrance into this afternoon's event, just click below. You DON'T want to miss this one!

Count me in!

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Will PPG's Earnings Report Lift Specialty Chemicals?

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PPG Industries (PPG) has been one of the best performing specialty chemicals ($DJUSCX) stocks and it reports its latest quarterly results tomorrow morning before the bell. Given the current technical outlook, I'd say there's a reasonable chance PPG reports solid results, though the risk to holding any stock into its earnings is very high. The DJUSCX, however, is certainly looking for a catalyst to lift it out of its current symmetrical triangle that's been squeezing and squeezing for the better part of a year now:

Relative strength is not what I'd use to describe the DJUSCX's performance over the past year. It's been quite the opposite. While the DJUSCX has been mired in sideways consolidation within its triangle, the S&P 500 has exploded higher. Therefore, I'd really need to see money rotate into the group (ie, see it on the chart) before I'd commit much capital to this industry. PPG has been an exception to the rule, though, as it wildly outperformed its industry peers in the second half of 2019. Will it result in a strong earnings report tomorrow morning? We'll soon find out.

I've also grown much more nervous about our current bull market advance. It could be winding down. A lot of great news has been built into prices and a number of headwinds are facing market participants right now, including billions and billions of dollars on the table for the market makers. I'll discuss this and much more tonight in an impromptu webinar discussing a possible market top approaching. Please join me if you can!

Happy trading!

Tom Bowley

Chief Market Strategist

EarningsBeats.com
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