• Entertainment
  • Finance
  • Marketing
  • Real Estate
  • Technology
  • Social
National Journal Community Of e-Experts
Finance 0

Tomorrow’s Big News Will Be In This ETF

By Kurt Osterberg · On April 12, 2018

Tomorrow, before the open, earnings season has the opportunity to ignite bullish sentiment in stock…

Or torch it.

Three influential companies that account for 25% of the Financial Sector ETF (XLF) will report earnings. 

The companies are, JPM, WFC, and C.

Needless to say, the market is likely to take the results from these three companies and use them as a proxy for what we should expect from the rest of the financial companies in the market.

For this reason, the XLF will serve as a very good measure of market sentiment for the market tomorrow.

And since the components of the XLF account for 14% of the S&P 500. This sector really can move the market.

In fact, the XLK (Technology) is the only Sector SPDR ETF with a higher % weighting or influence in the S&P 500. More on that in a future post.

So how should you use this opportunity to have one day potentially tell us so much about the market, based on one simple ETF?

  • Carefully – There is a chance that it will not move at all. The opportunity is that if it does have a big move, then you’ll know it could be an important indicator throughout earnings season.
  • Patiently – Don’t assume the open will provide “the answer”. Where it closes the day is more important. In fact, how it follows through beyond Friday’s range will ultimately be what you want use as your market indicator going forward.
  • Basically, this is an opportunity for the market to tell us what it’s feeling about earnings.

    Keep in mind the absolute earnings don’t really matter.

    What’s important how the market reacts to anything it learns that it didn’t already know. For example, reports that vary widely from expectations, and surprises from ‘guidance’ offered in the conference calls.

    S&P 500 (SPY) Stopped at the whole number, 267, and couldn’t close over prior highs at 266.75. Key support at 263.

    Russell 2000 (IWM) Nice, but choppy move higher. Well above key level of154.30. Initial support area 153.50-154.

    Print Friendly, PDF & Email

    Share Tweet

    Kurt Osterberg

    You Might Also Like

    • Finance

      STEPN Sneaker NFTs Sell For $100, Previously Worth $1200

    • Finance

      NFT Prices in Free Fall – 5 NFT Collections to Start Buying Today

    • Finance

      5 NFTs Trending on Twitter Going Cheap to Invest in Now

    No Comments

    Leave a reply Cancel reply

    Top Finance

    • 3 Best Large-Cap Blend Mutual Funds For Enticing Returns 3 Best Large-Cap Blend Mutual Funds For Enticing Returns
    • What is Value Chain Analysis? How to Deliver Value & Gain a Competitive Advantage What is Value Chain Analysis? How to Deliver Value & Gain a Competitive Advantage
    • Hedge Funds In The US Hedge Funds In The US
    • 5 Ridiculously Useful Non-Monetary Reward Examples that Improve Employee Engagement 5 Ridiculously Useful Non-Monetary Reward Examples that Improve Employee Engagement
    • Chart: Amazon’s Dominance In Ecommerce Chart: Amazon’s Dominance In Ecommerce

    New Posts

    • STEPN Sneaker NFTs Sell For $100, Previously Worth $1200

      STEPN Sneaker NFTs Sell For $100, Previously Worth $1200

      June 20, 2022
    • NFT Prices in Free Fall – 5 NFT Collections to Start Buying Today

      NFT Prices in Free Fall – 5 NFT Collections to Start Buying Today

      June 20, 2022
    • 5 NFTs Trending on Twitter Going Cheap to Invest in Now

      5 NFTs Trending on Twitter Going Cheap to Invest in Now

      June 20, 2022
    • Bill Gates – ‘NFTs & Crypto Based on Greater Fool Theory’

      Bill Gates – ‘NFTs & Crypto Based on Greater Fool Theory’

      June 20, 2022
    • Actor Seth Green Pays $300,000 to Recover his Stolen BAYC NFT

      Actor Seth Green Pays $300,000 to Recover his Stolen BAYC NFT

      June 20, 2022
    • About
    • Contact Us
    • Privacy & Policy
    • Sitemap
    • Terms of use

    Copyright © 2018-2021 NJCEE. All Rights Reserved.