Bank Earnings

Outlook 01/12: The unofficial start of earnings season kicks off today as big banks JPMorgan, Wells Fargo and PNC Financial report their quarterly numbers. Earnings for SP500 companies are expected to have increased by 12% in Q4, according to Thomson Reuters. But many companies are forecast to take one-time charges due to deferred taxes and may be reluctant to give the broad positive guidance expected by the trading community.

/ES Value: YVAH 2770 YPOC 2764 YVAL 2758

/ES Plan: Yesterday market closed leaving a bullish profile (PBT 2780). Overnight inventory is bimodal (LIS 2772) moving within yesterday's value and printing a new record high that should be visited on the regular session, so as usual we've these options:

A) If market remains below LIS 2772 with bearish internals, try to be a seller leaning on 2770-2772 towards ONL and LVN 2760. Failure to breakdown ONL early is a signal of a strength.

B) If market starts to move above LIS 2772 with bullish internals, try to be a buyer leaning on 2770-2772 towards ONH and PBTs 2780-83. Failure to take out ONH early is a signal of weakness.

Tips: Remember, stick to a trading plan and a systematic process, don't try to seek perfection. Use buy/sell range zones, not absolute levels. Take trades according to your risk, your goal is to come back next day.

Today's Economic Calendar

10:00 Business Inventories
12:30 PM Fed's Harker
01:00 PM Baker-Hughes Rig Count
04:30 PM Fed's Rosengren

Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.

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