Commentary: Paul Ebeling on Wall Street

Commentary: Paul Ebeling on Wall Street

Commentary: Paul Ebeling on Wall Street

$DIA, $SPY, $QQQ, $RUTX

This week it is President Trump and President Putin’s Summit in Helsinki Finland, but there is a lot to move markets during this week.

  • President Donald Trump meets Russian President Vladimir Putin in Helsinki Monday, and that is the main event this week. But earnings reports from dozens of companies will have the most market impact.
  • Fed Chair Jerome Powell speaks Tuesday and Wednesday in comments before the Senate Banking Committee and the House Financial Services Committee.
  • The focus remains on trade as analysts sift through earnings comments for any signs that President Trump trade policies are impacting profits or spending

Looking ahead

Monday, investors will receive the Retail Sales report for June, the Empire State Manufacturing Index for July, and the Business Inventories report for May.

Q-2 earnings season is officially underway.

Bank of America (NYSE:BAC) and BlackRock (NYSE:BLK) will report earnings before the open, and Netflix (NASDAQ:NFLX) will report after the close.

According to FactSet, Q-2 EPS in the S&P 500 are expected to grow 20% Y-Y with revenue up 8.4%. Earnings tend to come in modestly higher than Wall Street’s projections heading into the reporting season.

Strong economic growth and the Tax Cuts and Jobs Act are boosting corporate profits.

S&P 500 earnings are expected to grow for the 8th straight Quarter. And all 11 sectors are expected to report earnings growth for the 3rd Quarter running

Q-2 earnings are expected to grow 21% with revenue up 7%. Estimates for the following Quarter tend to come down during earnings season as companies set the bar to an appropriate level, leaving room for upside 3 months ahead. The last 2 Quarters broke that trend from recent years as economic growth has accelerated and lower taxes boosted profit expectations.

So…

Be looking to enter more plays as they continue making Bullish moves.

Pay attention in here the market looks Bullish as it moves to 16 August, which will mark the longest Bull Market in history.

Remember, it is your money, so your responsibility.

 

The Bulls Vs The Bears

Sentiment Indicators

VIX: 13.37; -1.60
VXN: 18.72; -1.63
VXO: 12.71; -2.25

Put/Call Ratio (PCR) CBOE: 1.00; +0.09

The Bulls Vs The Bears

Last week with the sharp drop in Bullish sentiment over the past 2 weeks, we saw the signals for a move back North. That move has started.

The Bulls are at 47.6 Vs 52.0 last

The Bears are at 18.4 Vs 17.6 last

 

Support and Reisistance

HeffX-LTN’s US Major Stock Market Indexes Technical Analysis for the Week Ended 13 July 2018

Date Symbol Price Technical Analysis Support Resistance
13 July 2018 QQQ 179.61 Bullish (0.40) 177.40 183.50
13 July 2018 DIA 250.2 Bullish (0.32) 247.04 250.79
13 July 2018 SPY 279.59 Bullish (0.39) 278.06 279.83

Have a terrific week

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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