Commentary: Paul Ebeling on Wall Street, Big Earning’s Week Ahead

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$DIA $SPY $QQQ $RUTX $VXX

Last week’s action

Stocks were consolidating the big move off of the 24 September lows on low to moderate volume.

Technical analysis

The NAS Comp, S&P 500, DJIA indexes finished lower on the wk. This current consolidation is 8 sessions in the making at the point where it will make a move, North of South. The action looks good in here, but the good looks aka patterns need good leaders to break them North.

Tech and Healthcare will lead the way in Y 2021 when measured both by percentage growth and absolute USDs of earnings

Big week for earnings reports

Earnings are to the Northside, about 84% of companies reporting have beaten ESP estimates, which would mark the highest percentage of companies beating estimates since Y 2008, while 81% are reporting strong revenues.

The quality of these earnings beats is high in that it’s not just cost cutting, but stronger revenues that companies are delivering.

Forward guidance is looking positive too.

Earnings and the prospects for good results ahead, will not fully ameliorate worries that about virus cases in the US and EU.

Earnings reports are important, but the market is focused on the election next Tuesday, and any news related to stimulus talks.

A Trump Victory drives the S&P 500 and DJIA due North.

Once those hurdles are cleared the Bulls are betting that an unprecedented snapback in earnings will take place in Y 2021.

I believe that record EPS results in Y 2021 is achievable if tech and healthcare are the Key drivers.

“Tech and Healthcare will lead the way in Y 2021 when measured both by percentage growth and absolute USDs of earnings”

Pay attention, take what the market gives.

Have a healthy week, Keep the Faith!

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