Earnings Season Secrets: Will the Market Keep Rising?

THE WEEK

Last week I mentioned that the 52-week high was proving to be very resilient with prices butting up against the high and then reversing.  On Friday we finally saw prices bust through the 52-week high on slightly higher than average volume.  Gold also hit a new high and is poised to break thru the $2,400 mark.  This is in spite of all our own politically scene, the global chaos and the severe weather conditions we are experiencing.  The Market is on the rise, however, this rise is not because of additional money flowing in.  The Market accumulation/distribution is the same as the prior week.  And as expected there was not a lot of drama in price fluctuations.

LOOKING AHEAD

Don’t expect the same quiet Market this week.  On Thursday and Friday before the Market opens, the CPI (Consumer Price Index) and the PPI (Producers Price Index) for June will be release.  I don’t think either reports will cause chaos as in the past.  However, there will probably be blips in prices as the reports are released.  Both are released before the Market opens making the first hours of trading a little more chaotic. 

Fed Chairman Powell also testifies before the Joint Economic Committee this week  on Tuesday and Wednesday.  I will be watching what he says and the reaction closely.  I am not expecting any surprises.  He is pretty intent on fighting inflation until he is sure the tide has turned.

This coming week is the start of earnings announcements.  An earnings announcement is when companies report their earnings for the past quarter.  They also discuss their products, marketing, any changes and their projections for future earnings.   These days instead of shareholder attending the meeting in person, the meetings are broadcast via the Internet.  The only outside attendees are usually outside financial analysts who watch the company.  Their predications many times impact the price reactions at earnings.  

HOW AM I DOING?

It was a good week.  I have a lot more trades in place now that the Market is smoothing out.  I trade a lot of diagonal PUT credit spreads.  When you increase the number of trades in place, the first two week of those trades are usually just breaking even.  It is the subsequent 6 to 7 weeks where profits are realized.  I am definitely on track to make my goal this quarter to double my trading account.  I have no losing trades developing which is exciting as it hasn’t happened for a while.

That brings me to the subject of this week’s webinar.  We are just entering the earnings season.

I have very loyal followers who might find this week’s subject a little boring because they already get it.  But, there are a lot of new folks coming onboard.  What I am going to share is valuable to every trader!

I still listen to podcasts and webinars and still find little pearls of wisdom everywhere!

The subject:  All about EARNING SEASON