(COMPANY EARNINGS WILL BE CENTRE STAGE THIS WEEK)
October 21, 2024
Hello everyone
WEEK AHEAD CALENDAR
Monday, Oct. 21
9:00 a.m. US Fed Speeches
10:00 a.m. Leading Indicators (September)
Tuesday, Oct 22
10:00 am Euro Area ECB Speech
10:00 a.m. Philadelphia Reserve Bank President Harker speaks in Ten Independence Mall, Philadelphia
Earnings: Verizon, General Motors, General Electric, Moody’s, Sherwin Williams, Baker Hughes, Seagate, Lockheed Martin.
Wednesday, Oct 23
9:45 am Canada Rate Decision
Previous: 4.25%
Forecast: 3.75%
10:00 a.m. Existing Home Sales (September)
10:00 a.m. Fed Beige Book
Earnings: Vertiv, Boeing, AT&T, Coca-Cola, Boston Scientific, Hilton, Tesla, Lam Research, IBM, Newmont, T-Mobile, Whirlpool
Thursday, Oct 24
4:00 am Euro Area Manuf. PMI
Previous: 45
Forecast: 45.1
8:00 a.m. Building Permits final (September)
8:30 a.m. Chicago Fed National Activity Index (September)
8:30 a.m. Continuing Jobless Claims (10/12)
8:30 a.m. Initial Claims (10/19)
9:45 a.m. PMI Composite preliminary (October)
9:45 a.m. S&P PMI Manufacturing preliminary (October)
9:45 a.m. S&P PMI Services preliminary (October)
10:00 a.m. New Home Sales (September)
11:00 a.m. Kansas City Fed Manufacturing Index (October)
Earnings: American Airlines, UPS, Southwest, Harley Davidson, Honeywell, Western Digital, Amazon.
Friday, Oct 25
8:30 am US Durable Goods
Previous: 0.0%
Forecast: -0.9%
Earnings: Colgate Palmolive
This week, the market is all about earnings. The results of these earnings will indicate whether stocks can keep roaring along and support the broadening we are witnessing in the market. Valuations are stretched – the S&P500 is trading at a 40% premium to its long-term P/E ratio, while tech stocks are trading at upwards of 60%. Earnings growth expectations are lower for this season, so the market could reward stocks that beat expectations. On the flip side, a big earnings miss could disappoint and sway investor sentiment.
Whatever the market deals out, retail sales are still expected to be quite strong this holiday season, and they are expected to be influenced by hurricanes and the Election.
MARKET UPDATE
S&P500
Uptrend is intact. Through an Elliott Wave lens, the market is still rallying within a broad wave 5 advance.
Next Target = ~ 5, 930
Support = ~ 5,800/5,750
GOLD
Uptrend intact. No signs of exhaustion yet.
Next target = ~ $2,750/$2,770
Support = ~ $2,700/$2,680
BITCOIN
Rally in progress. In the next week or two, we are looking to break out of the large flag pattern Bitcoin has formed over the last few months.
We reached $68,000 last week, and now we should see the bullish move continue to reach higher targets.
Next Target = ~ $73,400/$81,500
Support Range lies between $67,000 to $64,500
WHERE TO ADD WEIGHT
On October 10, I recommended a list of stocks to either add weight to if you held them or to start scaling into if you didn’t own them.
Today, I’m recommending you, once again, add weight to (SLV) and start scaling into (AGQ) Pro Shares Ultra Silver. Both stocks are now breaking out of a 6-month range pattern that could be interrupted as an inverse head and shoulders, and that sets up the potential for a bullish move, which would be a continuation of the overall bullish theme in the precious metals markets.
Pro Shares Ultra Silver (AGQ)
iShares Silver Trust (SLV)
AUSTRALIAN CORNER
Charles and Camilla are Down Under for a brief tour. (It may be the final time Charles visits Australia).
QI CORNER
SOMETHING TO THINK ABOUT
TRIVIA CORNER
Answers
1/ Which country has the longest coastline?
Canada. Its coastline measures 243,042 km (151,019 miles). This includes the mainland coast and the coasts of offshore islands. Canada’s coastline borders the Atlantic, Pacific, and Arctic Oceans.
2/ Who was the first U.S. billionaire?
Henry Ford. He has often been referred to as “American’s second billionaire” by those who believed Rockefeller to be the first. Henry Ford reached 10-figure zone by about 1925. His net worth was estimated to be around $1.2 billion by the mid-1920s. Today, that fortune would be worth around $200 billion.
3/ Which first lady was the first to appear on U.S. currency?
Martha Washington, the wife of the first U.S. President. She was the first woman to be featured on U.S. paper currency with a solo portrait.
Cheers
Jacquie