Markets are continuing to whipsaw, which is to be expected.
So for today’s chart, let’s look at one of the critical fundamentals of the market that is being lost among all this noise – earnings.
Chart of the Day
With the market being as it is, the fact that it is earnings season has unsurprisingly slipped below the radar.
But we’re right in the middle of earnings season…
And as the above “scorecard” shows – we’ve yet to see any significant decline in company earnings.
As of last Friday, 75% of the companies in the S&P 500 have reported actual second-quarter results.
Of these companies, 78% reported actual earnings above estimates – in line with the 5-year average of 77% and above the 10-year average of 74%.
Are these “great” results? Not really.
But they’re firmly in solid territory.
Remember, in the longer-run, earnings form the foundation of stock valuations.
Now, as traders, it’s true that our primary goal is to capture quicker shorter-term profits.
But understanding longer-term foundations creates the opportunity for these shorter-term profits.
I explain more in the Insight of the Day below.
Insight of the Day
Dislocations between longer-term fundamentals and shorter-term pricing creates significant opportunities.
This is even more the case during times of higher volatility – like what we’re in now.
Combine this with earnings season, where individual stocks have the power to move independently from the broader market…
And you have the perfect window to turn this market volatility into opportunity…
Even if the market keeps falling.
That’s why tomorrow morning at 11 a.m. Eastern…
I’m going LIVE for a special “insider” masterclass to reveal my top earnings season strategy.
This strategy works by following the trades of the people who know the most about the prospects of these individual stocks – the corporate insiders.
These insiders are better than any Wall Street analyst when it comes to trading their own company stock…
Which is why one stock this strategy pinpointed at the end of July is still up 35% – despite the market downturn…
While those who already had access to this strategy could have taken a fast 50% profit in just 5 days.
So make sure you click here to save your spot for my LIVE insider masterclass tomorrow morning…
Where I’ll show you:
- How to access the database containing the records of all these insider trades…
- The subtle yet dangerous mistakes traders make when trying to follow these insiders…
- And the 3 counterintuitive insider buying signals you must know about.
My team will send you the login details before the masterclass starts – so keep an eye out for that.
See you at 11 a.m. ET tomorrow.
Ross Givens
Editor, Stock Surge Daily
