We’re entering the last week of January, and what a month it has been. Stocks are off to their best start since 1987, led by small-caps, the Russell 2000 Index, which is up double-digits year-to-date.
When I think of small-cap stocks, I think of Jason Bond, it’s not surprising to hear that he’s up over $150,000 in trading profits this month, given what’s going on in the space.
As for me, I had my best trading day of the year on Tuesday, all by sticking to what I know works. I study macro-variables, dynamics in volatility, and catalysts. For my actual trading, I prefer options, and my setups are based on a simple crossover strategy.
As you can see, it has its days. If you’d like to know more about my trading style, check out my eBook: 30 Days to Option Trading.
Now, despite, the stock rally we’ve seen in January, it could all turn south this week.
This is the most important earnings week of the year, as high-profile companies like Facebook, Amazon, Apple, Microsoft, Exxon, and Tesla are set to report.
On top of that, the FOMC is set to announce its interest rate decision this coming Wednesday.
This is how I’m preparing for this ultra-important week in the stock market.
Upcoming Catalysts
We’ve heard the Federal Open Market Committee (FOMC) say they could remain patient with interest rate hikes. With this current market environment, the ongoing U.S. – China trade talks, and government shutdown, many traders are expecting them to say more, or less, the same in the coming week.
Now, volatility has been relatively low in January, with the S&P 500 Index rebounding from recent lows. The CBOE Volatility Index (VIX) is currently below 20 – indicating the market may be too complacent, even with all the potential risk on the table.
Check out the hourly chart on VIX.
Needless to say, volatility is over 50% off its recent peak.
Moreover, the CBOE VIX of VIX (VVIX) has remained relatively low, and it may be unsustainable.
Here’s a look at the hourly chart of VVIX.
Now, this is one indicator I like to use when gauging volatility. For the most part, when VVIX is below 90, it signals volatility could pick up. That said, VVIX has remained below 90, for the most part, this month.
Moving on.
There’s a lot going on during the last week of January. A slew of key economic indicators will be released, as well as mega-cap companies like Apple Inc. (AAPL) and Microsoft (MSFT) reporting earnings. That said, this market could get volatile again, which we love here at Weekly Money Multiplier.
That said, let’s look at the potential economic catalysts for the week.
Economic Calendar
- Monday, January 28, 2019No market-moving economic indicators.
- Tuesday, January 29, 2019FOMC meeting commences
International trade at 8:30 AM ET
S&P CoreLogic Case-Shiller HPI at 9:00 AM ET
Consumer Confidence at 10:00 AM ET - Wednesday, January 30, 2019ADP Employment Report at 8:15 AM ET
Gross Domestic Product (GDP) numbers at 8:30 AM ET
EIA Petroleum Status Report at 10:30 AM ET
FOMC Meeting Announcement at 2:00 PM ET
Fed Chair Press Conference at 2:30 PM ET - Thursday, January 31, 2019Jobless Claims at 8:30 AM ET
Personal Income and Outlays at 8:30 AM ET
Employment Cost Index at 8:30 AM ET
Chicago PMI at 9:45 AM ET
EIA Natural Gas Report at 10:30 AM ET
Fed Balance Sheet at 4:30 PM ET - Friday, February 1, 2019Employment Situation at 8:30 AM ET
PMI Manufacturing Index at 9:45 AM ET
ISM Manufacturing Index at 10:00 AM ET
Construction Spending at 10:00 AM ET
Consumer Sentiment at 10:00 AM ET
Now, it’s going to be interesting to see the jobless claims and employment situation with the ongoing government shutdown. Moreover, I’ll be keeping up with anything the FOMC says and does on Wednesday.
In addition to all these economic indicators, earnings season is about to kick into overdrive.
Notable Earnings Calendar
- Monday, January 28, 2019 Earnings Before Market OpenCaterpillar Inc. (CAT) expected to report at 7:30 AM ET (EPS estimate: $2.98, revenue estimate $14.37B)Earnings After Market CloseAK Steel Holding Corp. (AKS) expected to report at 4:45 PM ET (EPS estimate: $0.12, revenue estimate: $1.70B)Whirlpool Corp. (WHR) expected to report at 4:10 PM ET (EPS estimate: $4.30, revenue estimate: $5.74B)Reinsurance Group of America (RGA) expected to report at 4:15 PM ET (EPS estimate: $3.38, revenue estimate: $3.37B)
- Tuesday, January 29, 2019Earnings Before Market Open Lockheed Martin Corp. (LMT) expected to report at 7:30 AM ET (EPS estimate: $4.39, revenue estimate: $13.82B)Verizon Communications (VZ) expected to report at 7:25 AM ET (EPS estimate: $1.09, revenue estimate: $34.34B)3M Company (MMM) expected to report at 7:30 AM ET (EPS estimate: $2.27, revenue estimate: $7.94B)Nucor Corp. (NUE) expected to report at 9:00 AM ET (EPS estimate: $1.93, revenue estimate: $6.29B)Biogen Inc. (BIIB) expected to report at 7:00 AM ET (EPS estimate: $6.72, revenue estimate: $3.39B)Harley-Davidson Inc (HOG) expected to report at 6:50 AM ET (EPS estimate: $0.33, revenue estimate: $1.05B)
Pfizer Inc. (PFE) expected to report at 6:45 AM ET (EPS estimate: $0.63, revenue estimate: $13.77B)
Corning Inc. (GLW) expected to report at 7:15 AM ET (EPS estimate: $0.57, revenue estimate: $3.03B)
Allergan PLC (AGN) expected to report at 6:30 AM ET (EPS estimate: $4.15, revenue estimate: $3.97B)
Xerox Corp. (XRX) expected to report at 6:30 AM ET (EPS estimate: $1.16, revenue estimate: $2.63B)
HCA Healthcare (HCA) expected to report at 8:30 AM ET (EPS estimate: $2.59, revenue estimate: $12.16B)
Earnings After Market Close
Apple Inc. (AAPL) expected to report at 4:30 PM ET (EPS estimate: $4.17, revenue estimate: $84.10B)
Advanced Micro Devices Inc. (AMD) expected to report at 4:30 PM ET (EPS estimate: $0.09, revenue estimate: $1.44B)
eBay Inc. (EBAY) expected to report at 5:15 PM ET (EPS estimate: $0.68, revenue estimate: $2.87B)
Amgen Inc. (AMGN) expected to report at 4:00 PM ET (EPS estimate: $3.26, revenue estimate: $5.86B)
Juniper Networks Inc. (JNPR) expected to report at 4:15 PM ET (EPS estimate: $0.57, revenue estimate: $1.22B)
- Wednesday, January 30, 2019Earnings Before Market OpenAlibaba Group Holding (BABA) expected to report at 7:00 AM ET (EPS estimate: $1.65, revenue estimate: $17.26B)Boeing Co. (BA) expected to report at 7:30 AM ET (EPS estimate: $4.52, revenue estimate: $26.92B)AT&T Corp. (T) expected to report at 6:50 AM ET (EPS estimate: $0.85, revenue estimate: $48.42B)McDonalds Corp. (MCD) expected to report at 8:00 AM ET (EPS estimate: $1.89, revenue estimate: $5.16B)General Dynamics Corp. (GD) expected to report at 7:30 AM ET (EPS estimate: $2.98, revenue estimate: $10.29B)Anthem Inc. (ANTM) expected to report at 6:00 AM ET (EPS estimate: $2.20, revenue estimate: $23.36B)
Royal Caribbean Cruises (RCL) expected to report at 8:00 AM ET (EPS estimate: $1.51, revenue estimate: $2.31B)
Ally Financial (ALLY) expected to report at 7:30 AM ET (EPS estimate: $0.82, revenue estimate: $1.53B)
Earnings After Market Close
Facebook Inc. (FB) expected to report at 4:05 PM ET (EPS estimate: $2.17, revenue estimate: $16.41B)
Microsoft Corp. (MSFT) expected to report at 4:10 PM ET (EPS estimate: $1.09, revenue estimate: $32.45B)
Tesla Inc. (TSLA) expected to report at 4:30 PM ET (EPS estimate: $2.12, revenue estimate: $7.01B)
PayPal (PYPL) expected to report at 4:15 PM ET (EPS estimate: $0.67, revenue estimate: $4.24B)
Visa Inc. (V) expected to report at 4:10 PM ET (EPS estimate: $1.25, revenue estimate: $5.40B)
Wynn Resorts (WYNN) expected to report at 4:00 PM ET (EPS estimate: $1.36, revenue estimate: $1.55B)
United States Steel (X) expected to report at 4:15 PM ET (EPS estimate: $1.89, revenue estimate: $3.75B)
Qualcomm Inc. (QCOM) expected to report at 4:00 PM ET (EPS estimate: $1.09, revenue estimate: $4.88B)
Mondelez International (MDLZ) expected to report at 4:05 PM ET (EPS estimate: $0.63, revenue estimate: $6.78B)
- Thursday, January 31, 2019Earnings Before Market OpenGeneral Electic Co. (GE) expected to report at 6:30 AM ET (EPS estimate: $0.22, revenue estimate: $32.01B)Mastercard Inc. (MA) expected to report at 8:00 AM ET (EPS estimate: $1.53, revenue estimate: $3.79B)United Parcel Service Inc. (UPS) expected to report at 7:00 AM ET (EPS estimate: $1.91, revenue estimate: $19.92B)Celgene Corp. (CELG) expected to report at 7:30 AM ET (EPS estimate: $2.36, revenue estimate: $3.97B)Blackstone (BX) expected to report at 7:25 AM ET (EPS estimate: $0.03, revenue estimate: $825.87M)Raytheon Co. (RTN) expected to report at 6:55 AM ET (EPS estimate: $2.89, revenue estimate: $7.50B)
Northrop Gumman Corp. (NOC) expected to report at 6:45 AM ET (EPS estimate: $4.45, revenue estimate: $8.11B)
DowDuPont Inc. (DWDP) expected to report at 6:00 AM ET (EPS estimate: $0.89, revenue estimate: $21.11B)
Altria Group Inc. (MO) expected to report at 7:00 AM ET (EPS estimate: $0.94, revenue estimate: $4.81B)
ConocoPhillips (COP) expected to report at 7:00 AM ET (EPS estimate: $0.96, revenue estimate: $10.16B)
Valero Energy Corp. (VLO) expected to report at 6:35 AM ET (EPS estimate: $1.04, revenue estimate: $29.07B)
Hershey Company (HSY) expected to report at 7:00 AM ET (EPS estimate: $1.27, revenue estimate: $2.01B)
Earnings After Market Close
Amazon.com Inc (AMZN) expected to report at 4:00 PM ET (EPS estimate: $5.57, revenue estimate: $71.61B)
Yum China Holdings (YUMC) expected to report at 4:30 PM ET (EPS estimate: $0.09, revenue estimate: $1.94B)
- Friday, February 1, 2019Earnings Before Market OpenExxon Mobil Corp. (XOM) expected to report at 8:00 AM ET (EPS estimate: $1.05, revenue estimate: $74.18B)Chevron Corp. (CVX) expected to report at 8:30 AM ET (EPS estimate: $1.97, revenue estimate: $41.63B)Honeywell International Inc. (HON) expected to report at 6:30 AM ET (EPS estimate: $1.89, revenue estimate: $9.69B)Merck & Co. Inc (MRK) expected to report at 6:45 AM ET (EPS estimate: $1.03, revenue estimate: $10.88B)Cigna Corp. (CI) expected to report at 6:00 AM ET (EPS estimate: $2.53, revenue estimate: $11.34B)
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