Two weeks of trading are in the books.
So far, stocks are holding up well, as all major indices are positive in 2019. Led by the Russell 2000, which is up over 7%
As for me, I’ve already knocked down two +100% winning trades… thanks to some Fed comments and my iPhone.
And you know what?
Like the Fed, my trading is staying “data dependent.”
I’ve been making money…
as a bull…
….and even as a bear
In the stock market, volatility equals opportunity. It shouldn’t frighten you…it should have you excited.
That said, expect to see it come back, as earnings season kicks off on Monday.
The majority of earnings releases will be bank stocks. However, companies like Netflix, Delta Airlines, and UnitedHealth Group, will be announcing their quarterly results.
Now, I don’t exactly trade an earnings event… it’s too much of a crap shoot for me. If you ever listen to a corporate earnings call… you’ll know what I mean. That said, I do follow closely.
Why?
- It can give us a clue on how a sector or certain part of the economy is performing
- Corporate executives reveal their outlook and guidance on their company’s future
- It’s where sentiment meets reality
And you know what else?
Some of the best trades, risk vs. reward, happens right after companies release their earnings report and finish with the conference call. You see, when the dust settles, I’m watching these stocks to see if my money pattern appears.
And if it does…
I strike like a cobra.
The Trading Week Ahead
Right now, I’m looking at 6 potential setups that can multiply money next week. For example, check out this chart on AMZN … for my full list you can find them in the members’ section of Weekly Money Multiplier.
Moving on. Here are my thoughts on the market.
Volatility has subsided with the CBOE Volatility Index (VIX) trading below 20. That in mind, this may have been caused by some comments made by the Federal Reserve Bank Chair Powell, as well as oil prices catching a bounce.
Now, last Wednesday and Thursday, the markets were focused on the Federal Open Market Committee (FOMC) minutes and Jerome Powell’s speech. This gave us clues to the Fed’s plans for interest rate hikes.
Here’s an overview of what Powell said on Thursday:
- 2018 was a very good year for the U.S. economy.
- The financial markets have been volatility, and showing concerns of downside risks.
- The FOMC can wait patiently and carefully before it uses economic tools to stimulate the economy.
- The Fed does not have a pre-set path for interest rate hikes or cuts.
- The FOMC will be watching China’s economy closely, and tariffs did not have much of an impact on U.S. and China.
- Powell is worried about the growing amount of U.S. debt (the total U.S. debt is approximately $21.9T, $16T of which is owned by the public. Now, if the Fed does decide to raise rates, this figure could balloon even further.
Oil Prices Saw Its Longest Winning Streak
In addition to the markets focused on the Fed, some traders were focused on oil. Now, oil prices tallied its longest winning streak (9 consecutive green days) in nearly a decade last week, but snapped it on Friday. There are multiple reasons for the bounce in oil prices such as:
- The Organization of Petroleum Exporting Countries (OPEC) agreeing to production cuts in 2019.
- Canada agreeing to cut product to ease the pipeline shortage.
- U.S. and China making progress with trade talks.
That said, this has opened up another sector for Weekly Money Multiplier (WMM) members to trade.
Now, for the most part, I’ll be focused on the FOMC, oil prices, and corporate earnings for the upcoming week.
There’s a lot going on in terms of economic data and catalysts. Additionally, the banks are kicking off earnings season, and we’ve got some other big names reporting this week.
Upcoming Events
Here’s a look at what we’re watching in WMM:
Keep in mind the earnings announcement times could change.
- Monday, January 14, 2019No notable economic data this day.Corporate Earnings Announcements
Citigroup Inc. (C) reports at 8:00 AM ET (EPS estimate: $1.55, Revenue estimate: $17.95B)
- Tuesday, January 15, 2019Economic DataProducer Price Index at 8:30 AM ET
Empire State Manufacturing Survey at 8:30 AM ET
Minneapolis Federal Reserve Bank President Neel Kashkari speaks at 11:30 AM ET
Dallas Federal Reserve Bank President Robert Kaplan speaks at 1:00 PM ET
Kansas City Federal Reserve Bank President Esther George speaks at 1:00 PM ET
Corporate Earnings Announcements
JPMorgan Chase (JPM) reporting at 6:55 AM ET (EPS estimate: $2.20, revenue estimate: $27.10B)
UnitedHealth Group Inc. (UNH) reporting at 5:55 AM ET (EPS estimate: $3.22, revenue estimate: $57.94B)
Wells Fargo & Co. (WFC) reports at 8:00 AM ET (EPS estimate: $1.17, revenue estimate: $21.42B)
Delta Air Lines Inc. (DAL) reports at 7:00 AM ET
- Wednesday, January 16, 2019Economic DataRetail Sales at 8:30 AM ET
Import and Export Prices at 8:30 AM ET
Business Inventories at 10:00 AM ET
Housing Market Index at 10:00 AM ET
EIA Petroleum Status Report at 10:30 AM ET
Beige Book at 2:00 PM ET
Treasury International Capital at 4:00 PM ET
Corporate Earnings Announcements
Bank of America Corp. (BAC) reporting at 6:55 AM ET (EPS estimate: $0.63, revenue estimate: $22.34B)
Goldman Sachs Group (GS) reporting at 7:35 AM ET (EPS estimate: $5.50, revenue estimate: $7.90B)
BlackRock Inc. (BLK) reports at 6:10 AM ET (EPS estimate: $6.53, revenue estimate: $3.61B)
Alcoa Inc. (AA) reports at 4:10 PM ET (EPS estimate: $0.61, revenue estimate: $3.42B)
CSX Corp. reports at 4:00 PM ET (EPS estimate: $1.00, revenue estimate: $3.13B)
Kinder Morgan Inc reports at 4:05 PM ET (EPS estimate: $0.25, revenue estimate: $3.91B)
- Thursday, January 17, 2019 Economic DataHousing Starts at 8:30 AM ET
Jobless Claims at 8:30 AM ET
Philadelphia Fed Business Outlook Survey at 8:30 AM ET
EIA Natural Gas Report at 10:30 AM ET
Fed Balance Sheet at 4:30 PM ET
Corporate Earnings Announcements
Morgan Stanley (MS) reports at 6:55 AM ET (EPS estimate: $0.90, revenue estimate: $9.61B)
Fastenal Co. (FAST) reports at 6:50 AM ET (EPS estimate: $0.60, revenue estimate: $1.22B)
Netflix Inc (NFLX) reporting at 4:00 PM ET (EPS estimate: $0.25, revenue estimate: $4.21B)
American Express Co. (AXP) reports at 4:05 PM ET (EPS estimate: $1.79, revenue estimate: $10.59B)
J.B. Hunt Transport Services (JBHT) reports at 4:05 PM ET (EPS estimate: $1.50, revenue estimate: $2.31B)
- Friday, January 18, 2019Economic DataNew York Federal Reserve Bank President John Williams speaks at 9:05 AM ET
Industrial Production at 9:15 AM ET
Consumer Sentiment at 10:00 AM ET
Corporate Earnings Announcements
Schlumberger Ltd. (SLB) reports at 7:00 AM ET (EPS estimate: $0.37, revenue estimate: $8.15B)
VF Corp. (VFC) reports at 6:55 AM ET (EPS estimate: $1.09, revenue estimate: $3.87B)
SunTrust Banks Inc (STI) reports at 6:00 AM ET (EPS estimate: $1.40, revenue estimate: $2.35B)
State Street Corp. (STT) reporting at 7:00 AM ET (EPS estimate: $1.71, revenue estimate: $3B)