EarningsBeats Digest

Published: Mon, 10/19/20

EarningsBeats.com Digest for October 19, 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.

Two major members-only events this week!

Draft Day: Model ETF Portfolio | TODAY | October 19th at 4:30pm EST

Join Tom Bowley as he thoroughly vets the leading ETFs to truly educate our members as to what they own and whether those ETFs are worthy of investment based on our own proprietary methods. We plan to track this Model ETF Portfolio, just as currently do with our Model, Aggressive, Income, and Strong AD Portfolios.

Q3 Earnings | Tomorrow | October 20th at 4:30pm EST

Join Tom Bowley as he zeroes in on stocks that have reported earnings, as well as those which are about to report and could present high reward to risk opportunities. This is very timely webinar with thousands of companies set to report their earnings over the next several weeks.

Both of these webinars are EarningsBeats.com members-only events. To sign up for a 30-day NO COST trial and receive access to both events just click on the link below. You will receive room instructions prior to each webinar and both will be recorded for those of you unable to attend the live events.

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As An Investor, I'd Like For You To Meet A Deere Friend

"Leading stocks in leading sectors." You hear me say it over and over again. I write about it. I talk about it. Our Portfolios are examples of it (and proof that it works). Well, today's featured stock could easily be a poster child for it. It's also a stock that will be strongly considered for one of our portfolios when the portfolio selections take place on November 19th. Deere & Company (DE) is crushing its commercial vehicles & trucks ($DJUSHR) peers. And the DJUSHR is smoking hot right now as Wall Street pours money into the group. I think you'll be able to picture all of this with just one chart:

Take a good look at all those blue directional lines pointing higher from left to right. I can't draw a better looking chart. I do think that DE might be due for a period of consolidation given the negative divergence on the chart. But I believe that any pullback will represent an opportunity. The rising 20 day EMA is always one level that I consider purchasing during an uptrend. That would represent perhaps a 5% pullback. The two pink arrows mark PPO centerline and 50 day SMA support. I consider a PPO centerline test to be a momentum "reset". Strong stocks tend to bounce strongly off such resets. Regardless of how this plays out, DE should be viewed as one of the strongest stocks, while the DJUSHR should be viewed as one of the most rapidly-improving industry groups.

Happy trading!

Tom Bowley

Chief Market Strategist

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