4/14/22 Earnings Season Begins, Long Weekend Ahead

News:

Yesterday markets clawed back most of Tuesday’s losses as earnings season came in with a bang.

JPMorgan Chase (JPM), the first big bank to report, closed down 3% on lower profits.

But airlines rallied after Delta Air Lines, Inc. (DAL) reported a positive outlook with “historic … sales activity” and “robust demand” despite higher prices and fuel costs.

DAL closed up more than 6% and American Airlines Group Inc. (AAL) rallied more than 10% in sympathy.

What I can gather from yesterday’s earnings season kick-off is the market is rewarding good news more than it’s punishing bad news.

And despite inflation, Covid, and the war in Europe people are still spending money.

Risk-on bets in the Nasdaq and Russell 2000 led the way higher gaining about 2% each.

I’m also watching Bitcoin as crypto markets continue to show signs of life…

I’ve got a chart for you in the next section…

Technicals:

Bitcoin’s chart has my interest peaked. A clear channel has emerged…

Bitcoin Daily Candles – Chart via Barchart

While there is plenty of overhead resistance the digital asset is on a clear uptrend.

My main market indicator for the week is the VIX. It’s retreated from the 25 level and now I’m watching for it to break out of it’s upward trending channel.

VIX Daily Candles – Chart via thinkorswim

A move lower will help confirm my bullish stance.

Timing:

A slew of banks are reporting earnings this morning as earnings season rolls on. Names include:

  • Wells Fargo (WFC)
  • Goldman Sachs (GS)
  • Morgan Stanley (MS)
  • Citigroup (C)
  • PNC Financial (PNC)
  • Ally Financial (ALLY)

The market will be closed tomorrow for Good Friday and the Easter holiday weekend.

April’s options expiration is today. That could drive some additional volatility at the close.

My outlook remains bullish.

Energy stocks are my main watch.

Watchlist:

*Low Float
^Open Position

*HPK has support at $26
*IPI has support at $100, resistance at $110
*AMR has support at $140
HNRG has support at $4.50
CEIX is on watch
^ASRT has support at $3, resistance at $3.50
SGML has support at $15
^VERU has support at $14
OBE has support at $9
^BORR has support at $4.50
GOGO has support at $22
^LXU has support at $24
BTU has support at $28
^NAT has support at $2.50, resistance at $2.90
UEC has support at $6

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