[Market Outlook] On A Winning Streak!

Many Market Signs Appear More Bullish [Company Logo] On A Winning Streak! Many Market Signs Appear More Bullish By Donn Goodman and Keith Schneider [image] Hello to our loyal followers whom we refer fondly to as the “Gaugers”. We are here to help you GAUGE the health of the markets. Markets, to us, include stocks, bonds, US Dollar, interest rates, commodities, and any other asset class that may have a positive or negative effect on your investment portfolio. We hope that you and your families, friends, and business associates are safe and not enduring too many problems or obstacles from the volatile weather and unusually hot temperatures! Earnings Season Continues This past week corporate earnings announcements picked up speed. You may recall that we mentioned the large money center Banks (JP Morgan, Wells Fargo, Citigroup, etc.) had announced the week before. [If you did not read last week’s issue, you may access it here](=). Netflix and Tesla announced earnings on Wednesday that were perceived as a bit disappointing, even though Tesla beat on revenue and Netflix (because of cracking down on users sharing passwords) added over 5 million new subscribers (a huge number and greater than expected). The NASDAQ was down over 2% on Thursday as a result of these mega Tech companies losing some ground. It was the worst day for the NASDAQ since March. However, other large blue-chip businesses, such as IBM and Johnson & Johnson reported earnings beats and the Dow Jones Industrial Average continued to move higher. More about that in a minute. According to FactSet, 18% of S&P 500 companies have reported earnings. 75% have beaten earnings expectations with 61% also beating on revenue. This sounds good. However, please note that a) earnings expectations have been lowered this quarter; and b) usually 80% of S&P 500 companies beat their expectations. So far, the earnings beat is a little lighter than normal. The market is priced for perfection and if the large companies miss their earnings expectations or, make a negative comment in their post earnings announcement conference calls, expect that the stocks will go down. Given how good the markets have been thus far in 2023, most of it will be profit taking at this point. Be careful with your stocks that have upcoming earnings announcements. Make sure that you are aware of upcoming earnings announcements as they relate to your portfolio holdings. If you have a profit in a particular stock and are worried about the potential for an earnings miss or possible disappointment, there are 3 things you can do. 1. Sell some of your holdings and take profits. 2) write some covered calls to bring in income and potentially lock in some of the stock’s profit, and 3) buy puts or even better buy a put spread which is buying a put and selling a put further away. These are all protective actions you can take to lock in some of your gains. If you own a stock that has not been behaving well, it may be broadcasting that its earnings are not expected to be good. Another good week in the markets. As we shared above, this past week the NASDAQ (QQQ) tripped up on Thursday and had an atypical 2023 negative week being down a little less than 1%. However, the S&P 500 (SPY) gained 0.65% and the Russell 2000 (IWM), with its smaller cap companies, was up 1.5% and the mighty DOW (DIA), with its mega cap blue chip companies, was up 2.0% The Winning Streak Continues. You may not be aware, but Friday was a monumental day for the Dow. The Dow finished up positive (see below) and thrust it into the history books by having a WIN STREAK of 10 consecutive positive days. [image] There have not been many of these 10-day consecutive win streaks. [image] The Dow has been the big surprise this year. See the 18-month performance, which factors in the bear market of 2022: [image] This movement in the DOW and the S&P 500 being up almost 20% in 6+ months is quite meaningful. We provide some catalysts for this below. Use the links below to continue reading 14 reasons driving the markets’ recent positive action, the historical implications of the Dow’s record winning streak, and the Big View bullets and video by Keith. [Click here to continue to the FREE analysis and video.]() [Click here to continue to the PREMIUM analysis and video](). Best wishes for your trading, Donn Goodman CMO, Market Gauge Asset Management Keith Schneider CEO, MarketGauge P.S. When you’re ready, here are 3 free ways we can help you reach your trading goals… - [Book a call with our Chief Strategy Consultant](), Rob Quinn. He can quickly guide you to the resources that you'd like best. - Get the foundational building blocks of many of our strategies from Mish's book, [Plant Your Money Tree: A Guide to Building Your Wealth](=), and accompanying bonus training. - [Review quick descriptions]( of our indicators, strategies, services and trading systems here. Get more - follow us here... Twitter [@marketgauge]( and [@marketminute]( and [Facebook]( To stop receiving this go [here.]() Got Questions?Office hours 9-5 ET (New York time) Email: info@marketgauge.com Live Chat: Go to bottom right corner of our [home page.]() Call: 888-241-3060 or 973-729-0485 There is substantial risk of loss associated with trading any securities including and not limited to stocks, ETFs, futures, and options. Only risk capital should be used to trade. Trading securities is not suitable for everyone. No representation is being made that the use of this strategy or any system or trading methodology will generate profits. 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