EarningsBeats.com Digest for September 22, 2021
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Existing Patience During A Downtrend Can Prove Profitable
I remain extremely bullish as I look ahead to Q4. It's hard to believe, but earnings season will soon be upon us again. While we're currently negotiating short-term market weakness amidst a bearish historical week, we'll soon enter a much more bullish period as the end of September and earnings season draws closer. Therefore, as sellers
attempt to dominate the action, I'm simply waiting to see if I can find great trade candidates on sale. One strategy is waiting for key earnings-related gap support levels to trigger. I'll give you a two-chart bonus pack today to illustrate. The first chart is one that I hope sees more short-term selling. I'd view a trip back to 44.46 to be a gift on MaxLinear (MXL), a leader among semiconductor stocks:
A second chart, Nike, Inc. (NKE), has already arrived at key price support and has started to bounce, but if the market remains weak, I believe we'll get another chance here. Check out the earnings-related gap support in the 150-152 area:
Yes, the PPO has moved well into negative territory and yes, the AD line has been declining for several weeks. But NOTHING is more important than price support and I believe NKE has solid support in the 150-152 range. The closer that price moves to this zone, the better the reward to risk entry, in my opinion. And during selloffs, that's exactly what I'll be looking for - great reward to risk entry opportunities.
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Tom Bowley
Chief Market Strategist
EarningsBeats.com
Better Timing. Better Trades.
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