GE earnings: Departing CEO Immelt’s last chance to bring good things to investors
General Electric Chief Executive Jeff Immelt has one more earnings report to cement his legacy, and recent history suggests it may be best for investors to prepare to be disappointed—again. GE is scheduled to reveal second-quarter results on Friday, July 21, before the market opens.
The industrial conglomerate has been providing investors with a number of bottom-line figures lately, in an effort to give Wall Street a clearer picture of year-over-year performance. That may be particularly important given the $198 billion worth of asset sales since the GE Capital exit plan was announced in April 2015.
General Electric Earnings Preview: What Might Be Expected For Q2 Results?
General Electric Company GE reports second-quarter earnings before market open tomorrow. It’ll also be CEO Jeffrey Immelt’s last earnings call before stepping down and passing the reigns to John Flannery, who is currently the head of GE’s healthcare division. After 16 years as CEO, the company announced in June that Immelt would step down effective August 1.
The stock initially spiked on the news, but resumed its downtrend shortly after. That decision comes as the company continues to work refocusing on its core industrial operations. On the company’s earnings call, analysts will likely be looking for additional details about the future direction of the company under Flannery’s leadership and what kind of picture Immelt will paint on his last call as CEO.
PODCAST | Why Trading With Discipline is Not a Super-Power
Identifying new trading opportunities isn’t magic. Trading your strategy is simple…if you have one! I’m not smarter than anybody, I want to help you understand how to put those pieces together.
As a team we are doing a great job of discussing order flow, then momentum, then reading the tape over the last 3 to 6 days, and then you add room-to-go. (profit potential)
So you have all of that criteria, and then you drop down to your intraday time frames. Only then do you ask which stocks right now match my higher time frames, and which ones are currently giving me a good risk spot otherwise known as acceptable risk which is relative to each of us.
And then you take the trade, only after all of that criteria lines up.
A conversation that keeps repeating in the coaching calls, is the distinction between being disciplined and trading your strategy. The trader usually believes it means you should trade less.
I can absolutely understand why that might be the thought process, but I also want to explain why that is 100% the wrong idea.
On the Tape Today | 7-21-17
HOG-Harley Davidson held resistance and the bearish gap. Game planning a new short sale with a $48.25 sell stop to trigger the entry. Initial profit target on the swing trade comes in @ $43. Stop loss on a close above $49. If the general stock market turns bearish for a few days I am planning to hold this short sale until $40.
SPY ETF musters a neutral day below the open price but closes in the upper end of the trading range. No bears in sight. At least none with a good reason to sell.
Even the energy sector has broken the down trend. The XLE double bottom and rally is officially trading above the bearish order flow which began in December 2016. A rising tide continues to lift all boats.
The only negative I hear on trading desks is the pathetic volume.
Here’s something to plan for today. We reached a saturation point two days ago, that implies profit-taking. There is a difference between short selling and profit-taking. Short sales, smart ones anyway, happen during bearish order flow. If the stock market trades lower today, look to short weak stocks, not the strong ones.
I have witnessed too many smart traders blow up their P&L for the month getting cute shorting a strong stocks. Relative strength/weakness is one of the simplest and most powerful trading strategies to employ.
Good chance you will get a chance to put it to the test today.
Have a great day.
Stock Market Today:
Stocks to Trade | 7-21-17 Friday Edition
Bullish Momentum: MNK, AA, STLD
Bearish Momentum: slca, low, qcom, bhge, hd, bby, ual, apc, unp
Bullish Order Flow: ALXN, NVDA, UNH, JNJ, CELG, AET, MCHP, ADBE, BDX, ACN, WDC, LRCX, FB, AMZN, AMGN, CAR,
NFLX, TSO, BA, ADSK, AVGO, AAPL, BABA, RH, AAOI
Bearish Order Flow: slca, qcom, nfx, apc, fl, tjx, cost, dks, hog, tsco, rost, lb
Double Normal Volume: QCOM, LOW, CSX, SRPT, HD, TMUS, DHR, UAL, CCI, VRTX
Inside Day: bac, nflx, x, ibm, tsla, aal, skx, jblu, fast, cag, amtd, lvs, lulu
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