Outlook 01/09: Analysts are ratcheting up their forecasts for U.S. corporate profits at the fastest pace in more than 10 years, according to the research firm Bespoke Investment Group. And that’s happening, unusually, right in the run-up to an earnings-season kick-off. While the upgrades could be taken as a positive reflection on the economy’s outlook, in the past such bullish analyst sentiment has served as a precursor to a market decline.
/ES Value: YVAH 2748 YPOC 2746.50 YVAL 2741
/ES Plan: Yesterday market closed leaving a bimodal profile (LIS 2746). Overnight inventory is bullish (PBT 2753) moving a few ticks above 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 above LIS 2746 with bullish internals, try to be a buyer leaning on 2746-2747 towards ONH and PBTs 2753-2757 Failure to take out ONH early is a signal of weakness.
B) If market starts to move below LIS 2746 with bearish internals, try to be a seller leaning on 2746 towards ONL and YVAL-LVN 2741-40 Failure to breakdown ONL early is a signal of a strength.
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 Job Openings and Labor Turnover Survey
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
Questions? Just ask via email or twitter direct message.
