EarningsBeats.com Digest

Published: Mon, 05/18/20

EarningsBeats.com Digest for May 18, 2020

Trading Places Live!
Join Tom Bowley for a briefing on market activity on Mondays and Wednesdays from 9-9:30 am EST before the opening bell. Click here to listen live! The recording will be posted to our YouTube channel - be sure to subscribe to receive a notification!

Join Us for Today's Free Webinar

Join EarningsBeats.com's Chief Market Strategist Tom Bowley later today at 4:30 pm eastern for our Top 10 Stock Picks Sneak Preview Webinar!

During this session, Tom will cover what will be featured during tomorrow's "Top 10 Stock Picks" webinar when he unveils his Top 10 stock picks for his Model, Aggressive, Income and Accumulation/Distribution portfolios, 40 stocks in all. During today's event, Tom will review the results to date of each of the existing portfolios and discuss the methodology behind his stock selections. This is a must-see event since our Model Portfolio is up over 66% in 18 months as compared to the S&P 500 gain of 6%!

This is a FREE event that is open to all of our newsletter subscribers, including YOU! You will be sent room instructions later today prior to the event. The session will be recorded for those who are unable to attend live.

We hope to see you there!

Will The Hot Internet Space Lift This Company After Earnings Today?

I'm not a big fan of holding stocks into earnings reports. I realize there's plenty of money to be made if you're on the right side of the trade, but that same potential volatility tells us that risks are extremely high as well. For those willing to take big risks, the gamble might pay off, and if you follow a few simple rules, the chances of those risks paying off are likely much greater than 50-50. Two rules to consider are (1) trading only stocks within hot industry groups and (2) trading relative strength winners in those groups. The reasoning is quite simple. Wall Street has been accumulating those shares as well and they're "in the know" after having met with company management leading up to the end of its last quarter. As an example, let's look at the chart of Bilibili, Inc. (BILI), which reports its latest quarterly earnings after the bell today:

BILI's accumulation/distribution line (AD line) has been trending higher since September of last year and so has its relative strength line vs. internet stocks ($DJUSNS), one of the best performing industry groups off the March low. I might be a little nitpicky, but the slightly lower AD line in May (vs. April) and the slightly lower price relative line (BILI:$DJUSNS) in May (vs. April) is honestly the only negatives I see on this chart. BILI went public a little more than two years ago in March 2018 and, after sideways consolidating through 2019, this stock began to break out in a big way to open 2020. The pandemic slowed it down for sure, but it seems to be roaring back stronger than ever. From a fundamental perspective, BILI provides online entertainment services for younger folks in China.

Happy trading!

Tom Bowley

Chief Market Strategist

EarningsBeats.com
Better Timing. Better Trades.