EarningsBeats.com Digest

Published: Fri, 05/08/20

EarningsBeats.com Digest for May 8, 2020

Dear Digest Subscriber,

Tomorrow, Saturday, May 9th at 2pm eastern, StockCharts.com's Grayson Roze and Bill Shelby will join EarningsBeats.com's Chief Market Strategist Tom Bowley in our WebinAR (WAR) Room!

During this FREE event, Grayson and Bill will share their expertise in organizing ChartLists, managing ChartStyles, creating ChartStyle buttons (a superb short cut!), setting up scans (Bill is the creator of the scan engine at StockCharts, so absolutely NO ONE knows scanning like Bill), etc. Tom will also be discussing our Accumulation/Distribution ChartLists and will unveil yet another ChartList - the ShortSqueeze ChartList to track stocks that could be setting up for an explosive rally thanks to all of those that are betting against this market and, more specifically, certain stocks.

It should prove to be another great day of education of EarningsBeats.com! We hope that you all can make it. Room instructions will be emailed out on Saturday morning prior to the start of the event to make sure that you can join us LIVE. If not, the event will be recorded.

We hope to see you there!

It Takes More Than Just A Strong Accumulation/Distribution Line

There are times when you look at an AD line and think "Wow, this stock is being heavily accumulated, it must be a strong buy!" But it would behoove each of us to look at ALL of the evidence, not just one line or one indicator. As an example, take a look below at the chart of AES Corp (AES) and, specifically, look at the rising AD line over the past several months:

There's no doubt that this one indicator would suggest that AES is being accumulated. But take a look at how AES is performing vs. its conventional electricity peers. Then look at how its industry group has been performing vs. the S&P 500. AES is an underperformer within a very weak industry group. All of a sudden, that strong AD line doesn't seem to carry quite the same weight as it did before. It's why we advocate considering stocks ONLY if they show relative strength AND signs of accumulation. If AES breaks below key price support at 12, it will likely see an acceleration of selling pressure.

Happy trading!

Tom Bowley

Chief Market Strategist

EarningsBeats.com
Better Timing. Better Trades.