Earnings Season Starts

As a trader there are 4 times a year that feel like Christmas to us, and that is when earnings season rolls around. It starts to kick off a little bit this week with some financials reporting later in the week, and then Alcoa next week marking the official start for me. I will say that while I’m excited for it I can’t sugar coat the pretty ugly looking charts we have coming into this. Weekly charts are point lower, while daily could have a little bit of a bounce before deciding to join the weekly again like it did last week. Then somehow if earnings turn out to be super positive then the weekly sell setup could break across the board which would give us something completely different to work with.

I’m not in love with anything at the moment, and we still haven’t traded down into those lower levels just yet in the $SPY or $ES. 441.30 is that level, and I would feel alot better if we could trade that level and make a decision. It has the potential to hold us, or if it fails and we start confirming lower then longs would be off the table for a while I think. RTY & YM also look completely different at the moment, and commodities are all over the place with Bonds just in free fall.

Let’s get some resolve on the indices charts before looking at new swings, and find some individual equities gapping with relative strength/weakness. Overall I think we can sell rallies on small time frame trend flips until those lower support levels trade. Have a great week.