Tickers discussed: SPY QQQ IWM FB AAPL AMZN GOOGL MSFT NFLX TSLA KL WPM ZBH BBY KRE TLT
The Daily Profit Compass provides stock market technical analysis for the stock market today and is focused on the indexes and FAAMGs. Key levels and trading locations are provided, along with trading plans and timely commentary to keep you on the right side of the trade.
Big Banks kick off the earnings season on Wednesday.
April Earnings Preview
While not comprehensive, the calendar highlights most of the big names scheduled to report this month beginning next week with the money center banks.
The video is a detailed technical review of the indexes and FATMAAN names. All the key trading levels are identified along with commentary and trade plans for each ticker. Run the video at 1.25x to reduce run time.
Find the Video HERE
Downgrades / Upgrades
Earnings Season Kick Off
Big banks kick off the season on Wednesday. I expect them to knock it out of the park given the sharp yield rise in Q1 and a strong backdrop for capital markets. I expect positive commentary on both rates and the real economy. I expect this to filter into regional banks which report later in the cycle. Regionals are more directly tied to the real economy and rising rates because the rely more on traditional banking / loan generation. I look at the chart of KRE in the video. I expect earnings season to be strong. Of particular interest is the high-growth bubble stocks. If rates are rising do these continue to sell off or do traders buy the dip?
I think the backdrop remains bullish for the reasons cited below.
- Bullish Tailwinds
- New Highs are bullish ; not Bearish
- The run up into the next earnings cycle is usually bullish
- Seasonality: 15 of the last 16 Aprils saw price on SPY go higher
- TLT / Rates. Rates have taken a breather but IMO it is a pause before rates head higher. THat would be bullish commodities, cyclicals, banks. Potentially bearish high-flier bubble stocks but we’ll suspend judgement until that day comes.
$IWM 30 Min
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