EarningsBeats Digest

Published: Mon, 08/24/20

EarningsBeats.com Digest for August 24, 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 or visit our YouTube page later today to view the recorded session.

Join EarningsBeats.com Chief Market Strategist Tom Bowley in a webinar today at 4:30 pm EST

"Powerful Scanning Strategies for our Strong Earnings ChartList'

This event is open to all members of the EarningsBeats.com Community and room instructions will be sent to you prior to the start of the event.

Scraping the Bottom of the Barrel

Back in April, we created our Strong AD ChartList and our Weak AD ChartList to differentiate the stocks being heavily accumulated vs. heavily distributed. The Accumulation/Distribution Line, or AD Line, helps to illustrate this. The idea at the time was to simply provide a list of stocks to our members that we believed could be in store for significant gains (Strong AD ChartList) vs. those that might continue to suffer from COVID-19 (Weak AD ChartList). We haven't changed these ChartLists because we wanted to track how these differing stocks performed. Currently, here are the bottom feeders on the Weak AD ChartList, based on lowest SCTR scores:

The companies, industries and sectors shouldn't be much of a surprise. Those are clearly the worst areas of the market right now. The biggest surprise to me was that airlines ($DJUSAR) were not represented on this Top 15 Worst list. But before you rush out to buy airlines on Monday morning, please understand that there are 11 airlines on the Weak AD ChartList and 7 of them have single digit SCTRs. Only 1 has a SCTR score above 20 (Allegiant Travel - ALGT). This remains an extremely poor industry group, but transports ($TRAN) recently caught fire and that's helped the DJUSAR at least avoid the distinction of being the worst of the worst in the image above.

Happy trading!

Tom Bowley

Chief Market Strategist

EarningsBeats.com
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