EarningsBeats.com Digest for April 23, 2021
|
Upcoming Earnings ChartList
Our ChartLists for this week's upcoming earnings are now available. You can access them by clicking HERE.
Join Us for This Important
Event...
(Featuring EarningsBeats.com's Chief Market Strategist, Tom Bowley)
"Q1 Earnings
Season"
Date: Monday, April 26th, 2021
Time: 4:30pm EST
Earnings season has kicked into high gear and high reward to risk trading opportunities are endless! Join Tom Bowley, EarningsBeats.com's Chief Market Strategist, as he points out the best quarterly earnings reports to date and then uses both absolute and relative strength indications to uncover those companies most likely to report
blowout results throughout the balance of earnings season that could produce outsized rewards. This is a VERY popular quarterly event that you don't want to miss!
This is an EarningsBeats.com members-only event. To sign up for a NO COST 30-day trial and receive access to this event, click below. The event will
be recorded for those who are unable to attend live.
What Do You Do When There Are Mixed Signals Everywhere?
Personally, I tend to stay away from anything that appears to be sending many different signals. Instead, I look for as many signals pointing in the same direction as possible. Currently, NetGear, Inc. (NTGR) couldn't possibly be any more confusing. On the positive side, there were blowout quarterly results on Wednesday with EPS coming in at $.99 vs. $.66 estimate. That's a 50% beat! Despite a lot of selling the past several weeks,
NTGR is on the verge of setting a new high on its AD line. Thirdly, it's in the telecom equipment ($DJUSCT) industry, which just reached a 20+ year high. Yet when I look at this chart, it's hard to ignore all the negatives:
Key price support resided at 36.77 from the breakout of that resistance level in December 2020. We had tested that price support level successfully on multiple occasions until......Thursday. While the earnings were excellent, traders sold NTGR on the news and the stock closed below that key price support. Then check out the current PPO, which is the most bearish it's been in the past year. Then there's the 3-month relative downtrend vs.
its telecom equipment peers, now testing a very important relative support level that hasn't been broken over the past 8 months. Volume was also heavy on Thursday's selling. One silver lining would be the red hollow candle that printed as NTGR finished down for the day, but above its open.
If NTGR can recover quickly and move back above that 36.77 level, then I'd give it a decent chance for a rebound. However, another move below Thursday's intraday low would argue for further selling. Either way, traders need to be quite nimble with NTGR.
Happy trading!
Tom Bowley
Chief Market Strategist
EarningsBeats.com
Better Timing. Better Trades.
|
|
|
