The government has been shut down for almost 30 days now. And the stock market doesn’t care. The S&P 500 is up almost 14% since Christmas Eve.
As for me, I knocked down my third +100% winning trade of the year (that’s one a week if you’re counting from home) on Friday.
(if you’d like to know more on how a 12% stock move can turn into a 320% winner, click here. )
The market has gone from melting down to melting up. But that works for me, my strategies work in any market condition.
Now, there’s a lot to go over in the Jump, including: the fed, the economic calendar, earnings previews, and what I’m doing to prepare for this four-day trading week.
Your Jump on the Trading Week
Last week, New York Federal Reserve President John Williams reiterated what the FOMC said the prior week.
Williams – who is a voting member of the Federal Open Market Committee (FOMC) – noted the Fed needs to be prudent, patient, and practice good judgment this year. Moreover, he emphasized the FOMC would take a less aggressive approach to rate hikes in 2019.
That’s what the Fed is saying… but through experience, I know the Fed’s actions speak louder than words, so I’m going to wait and see what they do in the next meeting.
Moving on, the banks kicked off earnings season… with Goldman Sachs (GS) being the strongest performer – posting its best day in a decade. Moreover, we saw bank stocks like JPMorgan Chase (JPM) drop in the pre-market, only to recover and end up positive on the day. Bank of America (BAC) also soared after its strong earnings report – closing up over 7% the day it reported earnings.
Now, the CBOE Volatility Index (VIX) closed at 17.80 on Friday. I think the market is getting complacent here because just last month, the VIX was at 36.20. Additionally, the large companies still haven’t reported earnings yet – Apple Inc (AAPL) doesn’t report until the last week of January. Here’s a look at the hourly chart of the VIX.
Pretty nasty drop in volatility right?
Well, volatility could pick up at the end of the month with the changes in volatility products. For more details, check out what to do when volatility shifts.
That said, this earnings season could get whacky, so for the most part, I won’t be taking any trades into earnings… but I will be scouting for trades a few days after these companies report earnings – letting Weekly Money Multiplier members about my moves.
Moving on.
There are some economic indicators to keep on the radar this week.
Economic Calendar
- Tuesday, January 22, 2019
Existing Home Sales at 10:00 AM ET - Wednesday, January 23, 2019
These indicators aren’t considered market moving, but it’s still good to be mindful of them.)
MBA Mortgage Applications at 7:00 AM
ETFHFA Housing Price Index at 9:00 AM
ETRichmond Fed Manufacturing Index at 10:00 AM ET - Thursday, January 24, 2019
Jobless Claims at 8:30 AM
ETEIA Natural Gas Report at 10:30 AM
ETEIA Petroleum Status Report at 11:00 AM
ETFed Balance Sheet at 4:30 PM ET - Friday, January 25, 2019
Durable Goods Orders at 8:30 AM
ETNew Home Sales at 10:00 AM ET
Earnings season is about to kick into overdrive soon… that’s great for us here at Weekly Money Multiplier because it means more opportunities. Keep in mind, I rarely hold my trades into earnings because it’s risky. However, there are some times when I have conviction and feel really strongly about the direction… and best of all, I know my exact risk going in, as well as my target (I’m going for 100%+ wins all the time).
Earnings Calendar
Here’s a look at some of the earnings stocks I’m watching this week.
- Tuesday, January 22, 2019
Johnson & Johnson (JNJ) reports at 6:40 AM ET (EPS estimate: $1.95, revenue estimate: $20.11B)
Halliburton Co (HAL) reports at 6:45 AM ET (EPS estimate: $0.37, revenue estimate: $5.89B)
Steel Dynamics Inc. (STLD) reports at 7:00 AM ET (EPS estimate: $1.25, revenue estimate: $2.94B)
Stanley Black & Decker (SWK) reports at 6:00 AM ET (EPS estimate: $2.11, revenue estimate: $3.60B)
TD Ameritrade (AMTD) reports at 4:00 PM ET (EPS estimate: $1.00, revenue estimate: $1.47B)
Capital One Financial (COF) reports at 4:05 PM ET (EPS estimate: $2.40, revenue estimate: $7.07B)
Interactive Brokers Group (IBKR) reports at 4:00 PM ET (EPS estimate: $0.59, revenue estimate: $497M)
- Wednesday, January 23, 2019
Abbott Laboratories (ABT) reports at 7:45 AM ET (EPS estimate: $0.81, revenue estimate: $7.79B)
Procter & Gamble (PG) reports at 7:00 AM ET (EPS estimate: $1.21, revenue estimate: $17.20B)
Progressive Corp. (PGR) reports at 8:55 AM ET (EPS estimate: $1.01, revenue estimate: $8.51B)
United Technologies Corp. (UTX) reports at 6:55 AM ET (EPS estimate: $1.51, revenue estimate: $16.59B)
Kimberly-Clark Corp. (KMB) reports at 7:30 AM ET (EPS estimate: $1.68, revenue estimate: $4.46B)
Comcast Corp. (CMCSA) reports at 6:30 AM ET (EPS estimate: $0.62, revenue estimate: $25.83B)
Synchrony Financial (SYF) reports at 6:30 AM ET (EPS estimate: $0.93, revenue estimate: $4.25B)
Ford Motor Company (F) reports at 4:15 PM ET (EPS estimate: $0.30, revenue estimate: $36.96B)
United Rentals (URI) reports at 4:15 PM ET (EPS estimate: $4.77, revenue estimate: $2.21B)
Texas Instruments Inc (TXN) reports at 4:00 PM ET (EPS estimate: $1.24, revenue estimate: $3.75B)
Las Vegas Sands Corp. (LVS) reports at 4:05 PM ET (EPS estimate: $0.86, revenue estimate: $3.48B)
F5 Networks (FFIV) reports at 4:05 PM ET (EPS estimate: $2.54, revenue estimate: $546.65M)
- Thursday, January 24, 2019
American Airlines Group (AAL) reports at 7:30 AM ET (EPS estimate: $1.03, revenue estimate: $11.06B)
W.W. Grainger Inc (GWW) reports at 8:00 AM ET (EPS estimate: $3.60, revenue estimate: $2.79B)
JetBlue Airways Corporation (JBLU) reports at 7:00 AM ET (EPS estimate: $0.40, revenue estimate: $1.96B)
Southwest Airlines Co. (LUV) reports at 6:30 AM ET (EPS estimate: $1.05, revenue estimate: $5.68B)
Union Pacific Corp. (UNP) reports at 8:00 AM ET (EPS estimate: $2.04, revenue estimate: $5.74B)
Bristol-Myers Squibb Co. (BMY) reports at 7:00 AM ET (EPS estimate: $0.85, revenue estimate: $5.98B)
Intel Corp. (INTC) reports at 4:05 PM ET (EPS estimate: $1.22, revenue estimate: $19.01B)
Intuitive Surgical Inc. (ISRG) reports at 4:05 PM ET (EPS estimate: $3.06, revenue estimate: $1.04B)
Starbucks Corp. (SBUX) reports at 4:05 PM ET (EPS estimate: $0.65, revenue estimate: $6.49B)
Western Digital Corp. (WDC) reports at 4:10 PM ET (EPS estimate: $1.51, revenue estimate: $4.27B)
E*Trade Financial Corp. (ETFC) reports at 4:05 PM ET (EPS estimate: $1.05, revenue estimate: $747.36M)
Discover Financial Services (DFS) reports at 4:20 PM ET (EPS estimate: $2.09, revenue estimate: $2.81B)
- Friday, January 25, 2019
AbbVie Inc. (ABBV) reports at 7:45 AM ET (EPS estimate: $1.91, revenue estimate: $8.36B)
D.R. Horton Inc (DHI) reports at 6:30 AM ET (EPS estimate: $0.78, revenue estimate: $3.47B)
Colgate-Palmolive Co. (CL) reports at 6:55 AM ET (EPS estimate: $0.73, revenue estimate: $3.79B)
Despite the markets being open for just four days, it’s a jam-packed week, with plenty of catalysts.