Earnings Tsunami

Outlook 01/29: While stock index futures are down slightly to start the week, the market could continue its record-setting run with the SP500 already on track for a 7.2% gain in January. More than a fifth of the SP500 companies will release earnings this week, ranging from tech's heaviest hitters to healthcare and big oil. If positive, January would be the 10th month of gains for the Dow and SP, the best consecutive monthly winning streak since 1959.

/ES Value: YVAH 2864 YPOC 2849.50 YVAL 2842

/ES Plan: On Friday market left a trend multimodal profile. Overnight inventory is bearish (LIS 2869) printing new ATH that should be revisited at RTH, so as usual, we've these options:

A) If market remains below LIS 2869 with bearish internals, try to be a seller leaning on 2869-2864 towards LVNs 2857-2847 and GAP 2841. Failure to breakdown ONL 2864 early (1st 30m) is a signal of a strength.

B) If market starts to move above LIS 2869 with bullish internals, try to be a buyer leaning on 2869 towards GAP 2874 and ONH-ATH 2878.50 Failure to take out LIS 2869 early (1st 30m) is a signal of weakness.

Tips: Manage trades according to your size, if you use one contract, exit at first target. If you trade several lots, scale exits, and then move stop to breakeven. Manage your risk, your goal is to come back next day.

Today's Economic Calendar

10:30 Dallas Fed Manufacturing Survey

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

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