Yesterday, I talked quite a lot about the potential of earnings season.
So, for today, let’s look at a chart that goes deeper into what could be in store.
Chart of the Day
This is Goldman Sachs prediction of earnings and sales growth for the various sectors within the S&P 500.
As you can see, Goldman is predicting a 6% earnings growth for the S&P 500 as a whole for the latest quarter, which is pretty solid.
But just look at the huge variance between sectors.
Goldman is expecting 20% earnings growth for Info Tech…
And negative 7% growth for Energy.
Averages disguise variances.
What you see on the surface of the market – i.e. the major indexes – don’t tell you much about how things are moving underneath.
That applies to price action trends…
And it applies to earnings as well
That’s why, when it comes to playing price action, I focus on the strongest stocks in the strongest sectors.
When it comes to earnings, I do almost the same thing – but with a little more nuance.
I elaborate below.
Insight of the Day
Especially during earnings season, insider activity can be one of the strongest signals of strength and weakness.
Price action – especially those following certain patterns – can be extremely powerful indicators of a stock's strength or weakness.
But during earnings season, there’s another indicator that’s even more powerful…
Insider activity.
These are high-level execs – directors, CFOs, CEOs – trading their own company stock…
Often right before a big price-moving catalyst hits the news.
When you see them heavily selling, that’s often a sign of weakness – as in the case of FiServ below…
And when you see them heavily buying, it is often an indicator of something positive about to hit the wire.
But as I said…
It needs to be the right kind of insider buying…
Because most insider buying are just routine purchases with no predictive signal whatsoever.
I’ve identified 3 types of insider buying signals that have historically led to big upward moves..
And in just a few hours at 10 a.m. Eastern…
I’m going LIVE to walk you through these 3 insider buying signals, which form the core of my insider buying strategy.
Again, this strategy has never had a losing year since 2017…
It could have delivered a total compounded return of about 1,900% since then…
And now may be the best time to use it all year.
And I’ll see you in just a bit at 10 a.m. ET sharp.
Don’t be late.
P.S. If you’re planning to attend on a mobile device, make sure you download the presentation app now so you don’t miss anything when it starts. See you there.
iOS: https://apps.apple.com/us/app/goto/id1465614785
Android: https://play.google.com/store/search?q=goto&c=apps
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