Apple and Nvidia earnings are set to be released on 11/02 and 11/09 respectively, setting the stage for another couple weeks of profitable trades. Facebook and Alibaba are also reporting this week, highlighted in the watch list for potential trades.
Apple is expected to report fourth-quarter revenue between $49 billion and $52 billion, after reporting a revenue decline for the first time ever last year. Even if the results come in at the low end, Apple will be able to report year-over-year growth from last year’s fourth quarter revenue of $46.9 billion. However, the company’s management has always been conservative when it comes to AAPL earnings guidance, so we anticipate that the revenue figures will come in on the higher end of the scale.
Technically speaking, the change in momentum leaves bulls in control. Last weeks earnings announcements built a fire under anything “tech.” Price action is back above the 9/20ema. Note Apple’s PE is only 19.00 and trading and pretty impressive valuations, all things considered.
Use your Trade of the Day (ToD) setup if you are not already in the stock, as pre-market action shows potential for testing the 164.94 pivot high today. Apple is (+1.05) on 164,000 shares.
Analysts expect Nvidia to report revenue growth for the quarter through July of 37% to $1.96 billion and adjusted earnings per share of 70 cents, according to Thomson Reuters data. Nvidia recently traded at 52 times expected earnings, compared with an earnings multiple of 57 for AMD and 12 for Intel. Still, investors view this stock as the leader in AI, so expectations are high.
Technically speaking, the stock broke out of its recent consolidation on Friday. One caveat is its valuation of course, as the stock is up over 112% YTD. MACD, STO and RSI suggest higher levels could be in order, with NVDA changing hands at (-0.11) in pre-market trading.
We already have a position, so any additional shares will be added using the 5 min ToD method. Watch for an ABCD pattern for confirmation.
Winnebago recently reported an earnings beat. We started a position on Friday, with hopes of adding on a breakout today.
SOTEMA is bullish, supporting price action on each pullback. We expect that to continue, as MACD is above its signal line, with RSI and STO pointing to higher levels.
The Watch List for the Week
Many of the candidates this week are ToD Setups and noted as such. JBHT has seen a lot of “bullish sweepers” lately, reinforcing potential in this industry group. ODFL and SAIA broke out recently, catching everyone’s attention last week. Truckers are strong, while airlines are languishing.
Also, note the additional candidates. Energy and health care providers saw a lot of bullish action last week. We will focus on these industry groups as well, highlighting stocks trading above their bullish SOTEMA.
It’s Monday, so waiting for the Opening Range is important. We want to filter the anxiety of traders who missed opportunities last week, that are seeking to beat other traders to the punch by chasing. That never works, in my experience. Turn around Tuesday will probably be the sweet spot for the week.
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