Big Earnings Week Ahead
August 02, 2020
This coming week is a big earnings week. I try not to hold over earnings as it is typically too much of a wildcard. I have give back way too many gains holding over earnings.
Bitcoin and Ethereum are having an insane weekend. If you are in this market, you will know what I am referring to. If you are not in this market, you will want to check it out.
I recently began an Introduction to Trading and Investing Workshop that will provide you with the tools and confidence to take control of your investments.
I believe that this workshop will be of great benefit to both new traders and veteran investors. You can sign up on my website with this link: Trading and Investing Workshop.
If no dates are available, reach out to me.
Our free Telegram channel, Klarenbach Research, is growing in numbers and the members are getting more comfortable with asking questions regarding traditional markets and Bitcoin.
We post entries, stops and exits in order that members can learn how to identify low-risk high probability trades.
Some of our members are catching on really quickly and are experiencing success in their trading accounts.
This is where the majority of the ideas are posted. Talk to someone who is in the Channel and ask them how the results have been.
This is the link https://t.me/klarenbachresearch.
I hope you check it out.
We have had good luck with our Trade Ideas and the ideas posted on our Telegram channel.
I have included the Trade Results Summary.
The number of trades is becoming too lengthy for this publication.
As you can see, finding Investor Class Ideas has proven difficult with more success with Swing Trade Ideas and the Telegram channel.
The expectancy of the Telegram Channels is 5.0% for a 16-day hold.
Extrapolated out to a 30-day month and the result is a 9.4% monthly gain.
Let’s see if we can improve on that.
Here are the results of our best Telegram Channel Ideas.
MARKET REVIEW
**Click on any chart to enlarge**
S&P 500 Index (SPX)
The S&P is above all the advancing 10-, 20- and 50 Daily Moving Averages.. This is bullish.
The following idea appears less likely to occur with each passing week
At this time, I still consider the B Wave from my March 26 tweet near completion and am waiting for confirmation of the C wave formation.
NASDAQ 100 INDEX (NDX)
The Nasdaq trend of higher highs and higher lows is broken, however, Friday brought a strong close. Price is back above the 10- and 20- DMA. What will this week bring?
Dow Jones Industrial Average (DJIA)
The DJIA is finding support above the 200 DMA.
ISHARES TRUST RUSSELL 2000 ETF (IWM)
The Russell 2000 has been a laggard, however, it is finding support above the 200 DMA.
TSX Composite Index (TSX)
The TSX is finding support above the 200 DMA and is poised to move higher.
S&P 500 Volatility Index (VIX)
The VIX is below the 200 DMA and appears as if it has further to drop. This likely means higher prices in the S&P 500.
West Texas Oil (WTIC)
WTI is consolidating just under the 200 DMA. Will the 200 DMA continue to act as resistance?
GOLD Spot (XAUUSD)
Gold keeps moving higher suggesting a lack of confidence in the USD. Gold is extended, perhaps we see a correction this week.
US Dollar / Canadian Dollar (USDCAD)
USDCAD is below the 200 DMA. The 50 DMA is about to cross under the 200 DMA. Both of these suggest further weakness. Our green target below is still on the table.
US Dollar Currency Index (DXY)
The USD continues to look weak against this basket of currencies. Price is below the 200 Week MA and below this trend line from 2011. This is bearish.
BITCOIN (BTC)
BTC had a monster week breaking above the long-term trendline. This is extremely bullish. Extremely.
WHEAT FUTURES (ZW1!)
Price looks like it will move higher to test the top of the ascending triangle. I really like how this is playing out. This is good for farmers. Not so good for gluten eaters.
SOYBEAN FUTURES (ZS1!)
We have been anticipating this breakout from the falling wedge for months now. I like how this looks.
CANOLA NOV ’20 FUTURES (RSX20)
The weekly chart of Canola gets bullish above the 200 Week MA and looks really promising to break out of this long-term trendline.
TLT vs SPY RATIO
(ISHARES 20+ YEAR TREASURY BOND ETF vs SPDR S&P 500 ETF TRUST
The TLT/SPY ratio is stuck between above the advancing 200 DMA and below the declining 50 DMA. I am anticipating a big move, I am just unsure of the direction.
What will happen if the ratio moves in favour of the bonds? Take a look at what happened in February.
You won’t find this in any TA books, however, this is called sideways f*&$%^ery.
FACEBOOK (FB: NASDAQ)
FB had an incredible earnings report and responded with an 8% move on Friday.
AMAZON (AMZN: NASDAQ)
AMZN reported earnings last week also. Nice move on Friday.
APPLE (AAPL: NASDAQ)
AAPL reported earnings and a 4:1 stock split. The market liked that news. I purchased 15 computers for my business pre-2011 when the stock price ranged from $25 to $40. Those computers are still in use but are virtually worthless. If I would have bought the stock instead and held AAPL instead it would be worth in excess of $200K.
NETFLIX (NFLX: NASDAQ)
NFLX is consolidating above the 50 DMA and an area of previous resistance. Previous resistance tends to act as support.
ALPHABET (GOOG: NASDAQ)
GOOG looks like it had broke down from a head and shoulders pattern and found support at the 50 DMA and previous resistance.
INVESTOR CLASS IDEAS
The New Investor Class opportunities remain pretty thin as a number of my preferred setups will report earnings in the next week or two. They may make for a swing trade, however, it would be irresponsible of me to post an Investor Class Idea that reports within two weeks.
I will post in the Telegram Channel as Trade Ideas develop and are identified during the week.
Here is the link: https://t.me/klarenbachresearch
REMEMBER, CASH IS A POSITION
Don’t FOMO into a position. Have a plan.
Here are the results of our Investor Class Ideas.
YAMANA GOLD (AUY: NYSE)
AUY is up 21.7% in 34 days since our entry. We will keep raising our stops.
From four weeks ago:
AUY looks like it is breaking out above this bullish flag pattern and is above the advancing moving averages.
I am interested in an Investor Class or Position trade above Friday’s high of 5.34 with a stop below 4.66.
VANECK VECTORS JUNIOR GOLD MINERS ETF (GDXJ: NYSE)
GDXJ is up 27% in 35 days since our entry and poised to move higher. We are raising our stop to 56.73.
From four weeks ago:
GDXJ is above the advancing Moving Averages and looks like it is breaking out of the bullish pennant.
I am interested above Friday’s high of 47.54 with a stop below 41.93.
SWITCH INC (SWCH :NASDAQ)
Last week’s idea, SWCH did not trigger for us. I am still interested, however, the price is below the 50 DMA.
I am a buyer above 19.00 with an initial stop below 16.78.
CGEN (COMPUGEN : NASDAQ)
CGEN has been disappointing. It is down 10% in 14 days and is just above our stop.
NUAN (NUAN : NASDAQ)
NUAN resumed it’s upwards momentum and is now up 6.7% in 14 days.
SPS COMMERCE (SPSC : NASDAQ)
SPSC has been consolidating after a pretty nice move. It found support at the 50 DMA and is back above the 10- and 20- Day Moving Averages. I think it could break out of this consolidation. I like it above 75.38 with an initial stop at 69.37.
SWING TRADE IDEAS
Swing trades will be posted as they are identified in the Klarenbach Research Telegram Channel.
We have been active in the Telegram Channel and the results have been impressive.
Here is the link: https://t.me/klarenbachresearch
That is all for now!
Drop me a line with any questions or comments. You can do that here
I am actively posting charts and ideas on social media.
You can find me here:
Klarenbach Research: klarenbach.ca
Telegram: Klarenbach Research
Twitter: @trentklarenbach
StockTwits: trentklarenbach
Tradingview: trent.klarenbach
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