Outlook 04/19: Financial stocks are failing to keep up with the SP500, although first-quarter earnings continued to come in strong. Bank earnings have beaten analyst earnings and sales expectations, but their share prices have lagged. A possible explanation: the Wall Street Journal reports the combined Q1 earnings of Goldman Sachs, JPMorgan, Bank of America, Citigroup and Wells Fargo rose by more than $2.5 billion, thanks to lower corporate tax rates. Without that boost, Wells Fargo would have seen earnings decline from a year ago, and Citi and BofA would have seen no growth.
/ESM8 Value: YVAH 2717 YPOC 2714 YVAL 2710
/ES Plan: Yesterday market closed bullish (PBTs 2724-2734) but overnight inventory is bearish, moving below Yesterday's range, so as usual we've these options:
A) If market remains below YLOD 2703.75 with bearish internals, become a seller leaning on 2704 towards LVN 2687 and LVN 2677. 'Look above and fail' is a signal of weakness.
B) If market starts to move above YLOD 2703.75 with bullish internals, be a buyer leaning on 2703 towards YVAL 2710 and YVAH 2717. 'Look below and fail' is a signal of strength.
Tips: When the market opens below yesterday's range and remains below on subsequent tests, it is a clearly bearish signal. Sell leaning on any high volume edge below that level. Internals slope should be falling. If the market begins to trade above previous range and volume increases at highs, it would be recommended to exit short positions.
Today's Economic Calendar
09:30 Randal Quarles Speech
09:45 Bloomberg Consumer Comfort Index
10:00 Leading Indicators
10:30 EIA Natural Gas Inventory
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
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