In case you missed the news, tomorrow is an observed holiday for the markets.
That means we’re taking a day off from all programming here at Money Morning LIVE.
Even today, there is insanely light trading volume as people prepare for a relaxed weekend.
But given that we’re already in one of the most important earnings seasons in a decade, you should consider this nothing more than the calm before the storm.
Just take the semiconductor sector as an example.
I consider it to be one of the best barometers for judging the economy as a whole.
That’s because they are going through a transition period with supply, demand, and inflation issues, just like “real” people and businesses.
This week alone, we saw analysts conflictingly downgrade and upgrade their ratings of NVIDIA Corporation (NVDA).
And not to call anyone out, but these people don’t always have your best interest at heart when they go around stamping their approval on things.
Allow me to share what is really happening now and a “PSA” for how to trade days like today.
Here is my 4-point PSA for today…
- Light volume trading will generate a lot of false signals
- Volatility without volume is a killer for markets and traders
- Try to avoid opening new trades on these types of days
- Just let the positions that you have open benefit from the movement.
If I had to sum it up for you, here is what you should do on low volume days like today…
Sit back, crack open something to drink, and spend the time getting ready for Monday’s next big trade.
Sectors to watch next week
If you’ve been with me for a while, you know that I often like to trade the fallout after earnings announcements.
So here are some of the companies that are dropping theirs today…
Look who is on the list.
There are companies like Taiwan Semiconductor Manufacturing, Co. (TSM) which similar to NVDA – I highly recommend you follow the traders trend lines on and not what analysts are telling you.
We already took pre-earnings profits on Citigroup, Inc. (C), which is also on deck for today, during the Night Trader: Unlocked sessions last week.
And then there is Wells Fargo & Co. (WFC) that was down around 6.3% during this morning’s broadcast.
Fortunately, my Night Traders already have a put open on this mega bank.
Here’s what happened in Night Trader
Yesterday afternoon we were busy taking care of business in my “Nightstream.”
We started off our session closing half of our Petroleo Brasileiro (PBR) positions that were open for just 5 weeks at roughly a 100% gain.
The leaves the other 50% waiting for it to push even higher.
Then we made an exit on XPO Logistics, Inc. (XPO) for a gain of around 52%.
This earnings season is truly unlike any other and my Night Trader community is one of the best positioned to hunt profit opportunities each and every afternoon before the bell rings.
Even though this earnings season has already begun, it isn’t too late to get started now.
But you do need to act fast in order to not let the biggest wins of this special time pass you by.
Once again, we won’t be live tomorrow morning due to the market holiday, but I expect to see you Monday as we uncover our next big trades of the exciting week ahead.
Have a great weekend and wishing you all the best trading success.
Quantitative Specialist, Penny Hawk
P.S. If you’ve still not gotten your copy of the Bear Market Survival guide, click here and find out how to claim yours now.
April 14 2022