Saturday, May 20, 2017

Retailers   Reporting   Earnings  This  Week

We are at the end of the earnings cycle with over   90%   of the   S&P   companies already exiting the earnings confessional booth.   We have retailers like    $AZO, $AAP, $TIF, $WSM, $DLTR, $ANF, $BBY, $BURL, $COST, $DECK, $SIG, $ULTA    and   $BIG   slotted to report earnings this week.   Most of these companies are US centric.   They have very little to no exposure to foreign markets so there isn't any currency risk.   These companies are US consumer oriented.   70%   of the US economy is driven by the consumer spending.   Retailers such as   $SHLD, $JCP, $M, $KSS, $JPN   are on the decline.   They have lost their market share to online company such as   $AMZN.    Just be prepared for a nasty surprise and be defensive this week.

Thursday   May 25th i  s the busiest day for some of the retailers that report earnings that day.   Chances are the institutions may not react favourably to the earnings.   This weekend would be a good time to look over your stock positions in    Consumer Discretionary Sector    and have trailing stops to protect profits in a stock, if you already have   +5%   or more profits in the stock. Retailers may drag down the entire sector so it is best to be prepared for it. We had a nasty    distribution day   in    $SPY, $DJI    on Wednesday   May 17th   where the indexes dropped below the   50 day simple moving average   in volume   twice   the daily average volume.    $QQQ    however did not drop down that far but just managed to stay above the    34 day exponential moving average.    Most of stocks that were highlighted on my Stock Watch List the   past 4 weeks   in my blog   (investorspotlight.blogspot.com)   with stood the carnage in the market and were trading above the   21 day exponential moving average.   That is sign of strength in a stock when the general market trades below the   50 day simple moving average.   I had posted on my tweeter   @spotlightamin   to let my followers and readers know to start being defensive and raise   CASH   by selling off the laggards and holding on to the winners with appropriate trailing stops.
I shall post my detailed    Market Outlook    and results of some of the stocks on   My Watch List.   Be on the look out for it over the weekend.
Happy Trading.
Amin

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