It was one other very strong day on Friday, this time with the S&P 500 powering above 4400 and the NASDAQ 100 busting again above 15500, each clearing key value resistance ranges that successfully finish the sequence of decrease highs and decrease lows from the July excessive. The perfect information of all is that development continues to be the motive force behind market power. On Friday, the Dow Jones U.S. Semiconductor Index ($DJUSSC) jumped one other 3.7%, quickly approaching the July and all-time excessive of 10430. The DJUSSC wants solely one other 2.6% acquire to interrupt to one more all-time excessive:
Discover that the RSI has now moved again by 60, exhibiting extra bull market readings and conduct. The inexperienced arrows mark RSI help within the 40-50 vary throughout secular bull market advances. The 2 bear markets, one in 2020 and the opposite in 2022, noticed the RSI fall nicely beneath 40. The conduct within the RSI proper now could be completely bullish.
I do a TON of analysis throughout earnings season, highlighting key earnings gaps the place we are likely to see profitable assessments and reversals. Whereas we have seen a number of good gaps greater in semiconductors, listed here are two outdoors that group that occurred lately:
DASH
DoorDash, Inc. (DASH) lately reported the next revenues and EPS:
- Revenues: $2.16 billion (precise) vs. $2.09 billion (estimate)
- EPS: -$0.19 (precise) vs. -$0.45 (estimate)
After blowing away estimates, DASH gapped up 12% from 75.90 to 85.09. After reaching an intraday excessive of 93.19 the subsequent day, DASH fell again and examined the highest of hole help at 85.09 on Thursday. On Friday, DASH jumped off of hole help to the tune of three.48%. Whereas a drop to the rising 20-day EMA is actually a chance, I consider we’ll see DASH breaking out above 93 within the not-too-distant future:
The web group ($DJUSNS) has been one other very shiny business group, simply outperforming the benchmark S&P 500 all through 2023. So DASH shouldn’t be solely a inventory that crushed income and EPS expectations, but it surely hails from among the best business teams of 2023.
DASH hasn’t had an extended historical past as a public firm, but it surely has carried out nicely in November as you may see from the seasonality chart beneath:
The typical November acquire is at 14.1%, which is greater than another month of the yr. Once more, there’s not a whole lot of historical past to go on right here, however DASH does not less than present an inclination to maneuver greater this time of yr. December hasn’t been all that bullish, however January is the 2nd greatest month of the yr for DASH. I wish to see earnings-related technical breakouts line up with seasonal tailwinds. DASH does precisely that.
If you have not already taken me up on my supply to obtain my Bowley Pattern seasonality PDF, please achieve this. Study the long-term historic tendencies as a way to higher time your trades. There’s one interval – the identical days – each month that represents roughly 1/3 of the calendar month, however have produced greater than 80% of the S&P 500 good points. For those who’re not benefiting from this historic sample, it will be rather more tough to beat the S&P 500. You’ll be able to CLICK HERE to obtain your FREE COPY of my Bowley Tendencies PDF to higher perceive historical past and to enhance your buying and selling outcomes. By signing up, you will additionally obtain my EB Digest publication on Monday that contains a inventory prone to surge greater into its earnings report in December. You’ll want to test it out, together with the PDF!
Pleased buying and selling!
Tom
Tom Bowley is the Chief Market Strategist of EarningsBeats.com, an organization offering a analysis and academic platform for each funding professionals and particular person buyers. Tom writes a complete Day by day Market Report (DMR), offering steerage to EB.com members every single day that the inventory market is open. Tom has contributed technical experience right here at StockCharts.com since 2006 and has a basic background in public accounting as nicely, mixing a singular talent set to strategy the U.S. inventory market.
