INTO THE TRADING WEEK, 27.04.15 via <PREMIUM> www.YourPersonalTrader.com
A lot of negativity, complaining this weekend continued in regards to the S&P and Nasdaq move to record highs with many commenting on the narrow scope of sectors/groups participating in the move. Basically saying it was only a handful of stocks driving the market. That’s an all nice after the fact recap, but here we prefer to lead, “Luckily for us at YPT, we can trade forward… earnings get in gear!..Luckily, the earnings(Shadowlist plays) deluge this week may possibly perk them back up quite quickly”. YES it did!
At the end of the week, the group driving the market was YPT’s earnings linked growth stocks (Shadowlist) and our market momentum gauge the Nasdaq Internet Index +4%/wk, so there’s no complaining here. Last week ITTW said the market had no reason to break higher, this week it got some tailwind from exceptional MegaCap Internet earnings, which we noted as the ‘anticipation’ early week strength, the QNET new highs and the eventual strong reports from EBAY AMZN GOOG to go with NFLX earlier report.
In all, 25% of YPT Shadowlist stocks had gains of 5% or higher on the week making it the ‘handful of stocks’ for the week.
As far as the S&P, yes its a pretty subtle move at the moment, but we already knew that into last Friday’s trade, “What makes this QNET led trade a reality is today the Semi’s, Homebuilders, Capital Goods stocks and sectors were all weak off earnings. It is strictly a QNET (Growth) led market from start to finish (hopefully) this week. The question now is can QNET burden the load?”.
Can it burden the load?. Well now thanks the QNET breaking 2014 highs as noted Wednesday, the QNET index ETF links FDN PNQI SOCL are all of a sudden getting a lot of play with the gapper on Friday, which should help some. A who’s who list of notable Nets report this week may also (ie LNKD BIDU..) or AAPL, but nothing may help as much as some strong M&A activity to start the week to escalate the ‘pain’ trade.
All in, ITTW the premise remains the same as another plethora of earnings in our niche hits, remember the pre-earnings runs are trumping the reactions as far as follow through post good reports. Not worrying about the S&P and whether this is the breakout, the Shadowlist will most likely tell you as the week progresses.
ARTICLE LINK: ITTW, 27.04.15