We’re going to mix things up this week and begin our discussion with gold, which has finally broken out to the upside from a multi-year consolidation pattern. As you can see in the weekly chart below, gold has climbed above long-term resistance near 1375, and completed a bullish breakout of its ascending triangle pattern.
Article Category: Valuations
As earnings season chugs along it’s starting to look like analysts may have tempered their expectations a bit too much during the 4th quarter, which is typical. As you can see in the chart below, actual earnings (blue bars) have a steady habit of coming in above estimates (gray bars).
Earnings season officially kicks off this week, so let’s begin with a quick look at how expectations have evolved, and what it could mean for stock prices moving forward. The first thing to note is that S&P 500 earnings are expected to decline for the first time since Q2 of 2016.
At the end of each quarter J.P. Morgan puts out their so-called “Guide to the Markets,” which includes a wealth of information about the market and economy. The information isn’t the most timely, but it helps investors wrap their arms around many key data points.
There are a handful of charts that I’d like to discuss today, but before we do that let’s take a quick look at the technical condition of the stock market.