Stock Market Expectations for
The Week Ahead!

The Bull Run Continues!

Find out what we are considering for trades in the week to come!

by Ian Harvey
September 15, 2019

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The Past Week…..

Stock Market expectations were again met during the past week, with eight straight wins, its longest winning streak since May 2018. All three indices secured their third straight weekly win. Meanwhile, Wall Street's "fear gauge," the VIX, suffered its lowest close since late July.

More and different stocks participated in the market’s run to new highs, and that is a positive sign that the move higher is being built on a broader foundation.

Also, technical analysts see plenty of positives that should keep the rally going even after stocks regain their old highs.

Optimism for a trade deal pushed stocks near all-time highs in the past week and triggered the biggest weekly move in interest rates in nearly three years.

Earnings Predictions For Last Week….

Earnings Predictions” members had an interesting week; with many trades being better to exit before earnings…..

EARNINGS PREDICTIONS RESULTS FOR WEEK BEGINNING SEPTEMBER 09, 2019

DATE TRADE EXITING BEFORE EARNINGS GAIN/LOSS
September 09, 2019 CTRP SEP 20 2019 36.000 CALL 29% P.P 19% P.P.
September 09, 2019 CTRP SEP 20 2019 34.000 PUT 33% P.P 21% P.P.
September 10, 2019 GME JAN 17 2020 4.000 CALL 73% P.P. 32% P.P.
September 10, 2019 ZS SEP 20 2019 67.500 CALL 19% P.P. -55%
September 10, 2019 PLAY SEP 20 2019 45.000 CALL 62.5% P.P. -12.5%
September 11, 2019 ACB SEP 20 2019 6.500 CALL 50% P.P. 110% P.P.
September 11, 2019 ACB JAN 17 2020 6.000 CALL 11% P.P. 31% P.P.
September 12, 2019 KR OCT 18 2019 25.000 CALL 23% P.P. 45% P.P.
September 12, 2019 KR OCT 18 2019 24.000 PUT 0% P.P. -24%

If you wish to part of this action CLICK HERE.

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Stock Market Expectations for the Week Ahead…..

Strength in semiconductors and a whole host of other sleeper stocks is a telling sign that the market will not only make it to new highs but could remain in an uptrend, according to technical analysts.

Semiconductors are considered the backbone of tech. The semiconductors are giving clues that things aren’t so bad and China is still ordering, and there’s the potential for a trade deal.

Stocks are powering higher amid positive developments in the trade wars, with U.S. officials preparing to meet Chinese counterparts next month.

And, trade developments could continue to move markets in the coming week, just as they have in the past week. Analysts say the market is most vulnerable if there’s a negative surprise.

Trading in the past week has been markedly different than in other phases of the bull market. Value stocks, or those less loved and with lower price-to-earnings ratios, have been gaining favor. At the same time, the momentum stock winners underperformed, though some are moving higher after falling at the beginning of the past week.

The Federal Reserve is expected to cut interest rates by a quarter point on Wednesday, but what it says about its future plans will determine whether stocks continue their run at record highs.

The stock market is dancing around new highs, as the Fed joins other central banks to ease policy, in the face of a global economic slowdown.

Another factor that may see the stock market expectations continue rallying is the global economy may be poised for an upside surprise. If this occurs, the yield curve would steepen, reflecting expectations for rising inflation and stronger growth. As well, financial stocks would rally, and smaller stocks and those linked to the economic cycle would gain on hopes the global growth engine is stirring to life.

Stock Market Calendar for the Week Ahead

Monday

  • 8:30 a.m. Empire State manufacturing

Tuesday

  • Fed begins two-day meeting
  • 8:30 a.m. Business leaders’ survey
  • 9:15 a.m. Industrial production
  • 9:15 a.m. Capacity utilization
  • 10:00 a.m. NAHB survey
  • 4:00 p.m. TIC data

Wednesday

  • 8:30 a.m. Housing starts
  • 2:00 p.m. Fed decision
  • 2:30 p.m. Fed’s Powell holds press conference

Thursday

  • 8:30 a.m. Initial claims
  • 8:30 a.m. Philadelphia manufacturing survey
  • 8:30 a.m. Current account
  • 10:00 a.m. Existing home sales
  • 10:00 a.m. Leading index

Friday

  • 11:20 a.m. Boston Fed President Eric Rosengren at Stern School of Business conference
  • 2:00 p.m. Dallas Fed President Robert Kaplan at Community Forum hosted by the Federal Reserve Bank

Stock Market Expectations for Earnings

Monday

  • Concrete Pumping Holdings, ReneSola

Tuesday

  • Adobe, FedEx, Chewy, Cracker Barrel Old Country Store, Apogee Enterprises

Wednesday

  • General Mills, Herman Miller

Thursday

  • Darden Restaurants, Steelcase, United Natural Foods, U.S. Gold Corp

Besides some of those companies mentioned above, which will be part of our stock market expectations considerations for members of “Earnings Predictions;” there are several that will be recommended to other members - of “Armchair Traders,”  “Cut-to-the-Chase” and “Mentorship” - such as mentioned in the article…..

Apple Stock Climbs But Where To Now?” that will part of the “Cut-to-the-Chase” portfolio this week.

Other companies that may be recommended for options trades, either puts or calls, are…..

  • Coffee giant, Starbucks, was down about 5% last week, closing at 90.48 on Wednesday. Will it rebound?
  • Software company VMWare stock, which closed at 151.11 on Friday, is down more than 25% since its 2019 high of $205.52 on May 16th. However, COO Sanjay Poonen  of Palo Alto, California-based company, says “its recent acquisitions could benefit it.” Will it continue downwards though?
  • Splunk, which focuses largely on analyzing big data, has seen its stock drop almost 20% from its 2019 high. Where is it heading?
  • Shopify has made a recent acquisition of warehouse automation start-up 6 River for $450 million. Shopify is expected to soon be second behind Amazon for U.S. e-commerce. But the downtrend continues – has it bottomed?
  • Chipotle may be at a great buy-point after being down almost 10%, but has it bottomed?
  • Chesapeake Energy has seen an increase in October puts - due to crude futures having cooled in the final days of the week, sending liquid gold to a likely weekly decline?
  • Caterpillar is flashing warnings signs, so for the short-term will traders be wary about the trade-sensitive construction concern?
  • Broadcom's earnings update caused a small pullback for the shares, but several AVGO analysts actually raised their outlooks on the chip maker – confusing?

Find out the answers here!

Action to Take Based on the Stock Market Expectations…..

According to our stock market expectations it is expected that the market will continue moving higher and the S&P 500 to reach 3,150 by the end of the year.

Improvements in indicators such as the advancing shares over declining; is a good sign for further gains. This past week has seen the percent of stocks with an upward sloping 200-day moving average is the best of the year so far, and new highs are showing up in transports, discretionary and banks.

The following still rings true for the stock market expectations in September, despite the past history as noted in an article earlier this month…..

“I believe there is still plenty of upward movement in the stock market, with lots of volatility thrown in - The Bull Rally Continues? – as there are still plenty of driving factors such as better-than-expected earnings reported in sectors that help drive the economy, the trade tensions may ease and eventually be worked out, the Fed’s recent rate cut will help the housing market, world conflicts become less and the economy will continue to be okay. Obviously, there is always the unforeseen situation where a “black swan” raises its feathers, but for now there are still plenty of positives to profit from going forward.

So for Stock Options Made Easy, and its members, we tend to play our own game, not to be “sheep-to-the-slaughter”, and continue to profit!”

To get more overall investment insights, earnings predictions for the week ahead, and profitable trades provided to members in real time, join us at Stock Options Made Easy today!


Best of Trading,
Ian Harvey
Director of Stock Options Made Easy


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