Stock Market Expectations for
The Week Ahead!

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

by Ian Harvey
September 29, 2019

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The Past Week…..

Stock market expectations were certainly thrown aside last week; with plenty of volatility experienced, basically, due mainly to several factors…..

  • the inquiry into impeaching President Donald Trump.
  • updates on the U.S.-China trade relationship, and even though the two sides agreed to meet on Oct. 11, and
  • news late in the week that the Trump administration could put restrictions on investments in China.

The Dow finished the week on a gloomy note, and the S&P 500 and Nasdaq joined the Dow in the red, and all three benchmarks logged their second straight weekly losses. As global trade concerns rear their ugly head again, Wall Street's "fear gauge," the VIX, logged its highest close in over three weeks. 

The S&P 500 down 1%, finishing at 2,961. The Dow gave back 0.4% to close at 26,820.25. And the Nasdaq recorded a 2.2% weekly loss to finish at 7,939.63.

Earnings Predictions For Last Week….

This past week was a much better week for “Earnings Predictions” members scoring four out of six profitable trades.

By following the strategy outlined in the article “Trading Capital Management” – where, to achieve maximum profit, and to minimize loss, it is contingent for the trader to use an equal amount of money for each trade – members were able to make a total potential profit of 381% despite two losses.

EARNINGS PREDICTIONS RESULTS FOR WEEK BEGINNING SEPTEMBER 09

DATE TRADE EXITING BEFORE EARNINGS GAIN/LOSS AFTER EARNINGS
September 24, 2019 KMX OCT 18 2019 87.500 CALL 61% P.P 65% P.P
September 24, 2019 BB OCT 18 2019 7.500 CALL 9% P.P -98%
September 24, 2019 NKE OCT 18 2019 90.000 CALL 63% P.P. 208% P.P.
September 26, 2019 ACN OCT 18 2019 190.000 PUT 36% P.P. 31% P.P.
September 26, 2019 RAD OCT 18 2019 7.000 CALL 47% P.P. 245% P.P.
September 26, 2019 MU OCT 18 2019 50.000 CALL 18% P.P. -70%

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Stock Market Expectations for the Week Ahead…..

It appears that the stock market expectations for the week ahead will be much of the “same-old-same-old” with plenty of volatility due to several existing challenges.....

  • the inquiry into impeaching President Donald Trump,
  • Brexit,
  • the trade war with China, and
  • sluggishness in the global economy.
  • And now, the World Trade Organization (WTO) is set to back a U.S. request to impose tariffs on billions of dollars of European goods, potentially sparking a new trade war across the Atlantic.

Washington has said it wants to impose tariffs of up to 100% on European exports to the U.S. with an annual trade value of around $11.2 billion a year.

As well, the EU has its own separate case before the WTO, in which it argues that the U.S. plane maker Boeing receives unfair financial assistance from the U.S. federal government. That ruling from arbitrators in Switzerland is estimated to be about nine months away.

However, despite the negatives, stock market expectations point to new highs in the near future due to geopolitical developments, such as some sort of deal with China.

Obviously, more volatility is expected because of the efforts by House Democrats to impeach Trump. The investigation into the president has to do with his withholding of aid to Ukraine and whether it was tied to a request to get dirt on front running Democratic presidential candidate former Vice President Joe Biden and his son Hunter.

Stock Market Calendar for the Week Ahead

Monday

  • 9:45 a.m. Chicago PMI

Tuesday

  • Monthly vehicle sales
  • 9:15 a.m. St. Louis Fed President James Bullard
  • 9:45 a.m. Manufacturing PMI
  • 10:00 a.m. ISM manufacturing
  • 10:00 a.m. Construction spending
  • 4:15 p.m. Chicago Fed President Charles Evans

Wednesday

  • 8:15 a.m. ADP Employment
  • 10:50 a.m. New York Fed President John Williams
  • 9:15 p.m. Philly Fed President Patrick Harker

Thursday

  • 8:30 a.m. Initial claims
  • 9:45 a.m. Services PMI
  • 10:00 a.m. ISM nonmanufacturing
  • 10:00 a.m. Factory orders
  • 12:10 p.m. Cleveland Fed President Loretta Mester
  • 3:45 p.m. Chicago Fed President Charles Evans

Friday

  • 8:30 a.m. Employment report
  • 8:30 a.m. International trade
  • 10:15 a.m. Boston Federal Reserve President Eric Rosengren
  • 10:25 a.m. Atlanta Fed President Raphael Bostic
  • 1:00 p.m. Minneapolis Fed President Neel Kashkari

Stock Market Expectations for Earnings

Monday

  • Thor Industries, Cal-Maine Foods

Tuesday

  • McCormick, Stitch Fix, United Natural Foods

Wednesday

  • Lennar, Bed Bath & Beyond, Paychex, RPM International, Lamb Weston, Acuity Brands

Thursday

  • PepsiCo, Constellation Brands, Costco, International Speedway

Friday

N/A

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 below…..

  • Advanced Micro Devices has been on fire for the past four years, a stretch in which AMD stock has risen over 1,600%. At the current moment, AMD stock is all about market share, and AMD continues to expand market share at a rapid rate.
  • Roku - this streaming-device maker is a much stronger company than Wall Street realizes. And when the “streaming wars” took a dramatic new turn this month, the bad press buried this incredible opportunity even deeper. Is it time to reconsider the direction it will take now?
  • SciPlay Corporation - results from its latest quarter showed that Q2 revenue reached $118.1 million, up 18% year-over-year which was more than double the market growth rate. It doesn't hurt that profits and cash flow also gained year-over-year.
  • Shopify - Over the past few weeks, the stock has shed 15% as investors have booked profits on what has been an 800% rally over the past three years. The “buy the dip” thesis on SHOP stock revolves around several factors......

Find out the answers here!

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

Stock market expectations going forward will likely see favouritism for cyclical names, such as financials and energy.

Long-term yields will probably move higher, and you could see some form of switching out of bond exposure and into stock exposure.

Strategists said the impeachment efforts against Trump may ultimately not have a negative impact on stocks. Even if he is impeached by the House, the Senate would be expected to acquit him.

For the year to date, the S&P 500 is up 18.1%, but in the third quarter, so far, it added just

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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