LOW-Lowes Co Earnings Report | Stocks to Trade 8-23-17

LOW-Lowes Co

LOW-Lowes Co

Lowe’s earnings, sales miss Street estimates; shares fall 5%

Lowe’s reported second-quarter earnings and sales on Wednesday that fell short of analysts’ expectations. The home improvement retailer has also lowered its outlook for the full year, anticipating investing more in marketing and service for customers in stores, which will hurt margins. The stock was last falling around 5 percent in premarket hours on the news.


Is Lowe’s Companies, Inc. (LOW) Stock Still Worth a Look?

Home improvement retailer Lowe’s Companies, Inc. (NYSE:LOW) is set to release second-quarter earnings before the bell on Wednesday. While I am not particularly fond of LOW stock heading into the report, I do think that any post-earnings sell-off would offer a compelling “buy the dip” opportunity.

With Lowe’s stock, then, sell now, buy later is my strategy. Investors are buying up LOW stock immediately ahead of the report, but this pre-earnings rally comes after a pretty steep sell-off.


Lowe’s quarterly earnings, sales below Wall Street’s forecasts

Lowe’s Cos. LOW, +2.67% on Wednesday posted quarterly revenue and adjusted earnings that fell short of Wall Street’s targets. The home-improvement retailer said second-quarter net earnings came in at $1.42 billion, or $1.68 a share, compared with $1.17 billion, or $1.31 a share, a year ago.

Adjusted earnings were $1.57 a share for the most recent period, missing the FactSet consensus estimate of $1.62 a share. Sales at Lowe’s rose to $19.49 billion from $18.26 billion in the year-earlier quarter, but that was below the $19.55 billion forecast from analysts. Lowe’s shares were down 6% in premarket trade following the results.


LOW-Lowes Co Chart Before Earnings 8-23-17

LOW-Lowes Co Chart Before Earnings 8-23-17

Today's Trading Lesson

Tape reading is not as popular as it was in the old days. Computers have taken care of that.

Savvy traders have adapted and are skillfully implementing tape reading in a much different way today. Chart reading is one method. Another technique is interpreting news and volume traded off the news.

When I say the old days, I am referring to 2007. This is when the NYSE expanded to allow increased amounts of electronic trading. (More on this at the end of the article)

Traders would read the ticker tape (invented by Edward A. Calahan, updated by Thomas Edison) to determine the recent buying and selling pressure. It was much easier to spot a large buyer or seller because daily volume was incredibly light so it was easier to spot a big player. The down side to light volume was liquidity. It could be difficult to exit a trade at a reasonable price.

In the early days there were “bucket shops” to place your trades. I guess you could say they were the first brokerage houses, but without brokers. Prices were posted to a chalkboard as they crossed the ticker tape.

An interesting book to read is Tape Reading and Market Tactics. It is a terrific $7.95 education from 1931. It includes actual numbers and volume from the stock market. A classic trading book to have in your office.

This is how I first came to take an interest in the message of the tape. The fluctuations were from the first associated in my mind with upward or downward movements.

Continue Reading…


On the Tape Today | 2-3-17

TTWO-Take Two Interactive 8-23-17

TTWO-Take Two Interactive 8-23-17

TTWO-Take Two Interactive produced a fuel candlestick coming out of an inside day. Game planning a new swing trade long using a $95.25 buy stop. Initial target comes in @ $102. Stop loss planned on a close below $94.


SPY ETF Chart 8-23-17

SPY ETF Chart 8-23-17


Stock Market Today: Heatmap of the S&P 500

SP 500 Heatmap 8-23-17

SP 500 Heatmap 8-23-17

Stocks to Trade | Wednesday Edition 8-23-17



Bearish Momentum: momo, bzun


Bullish Order Flow: WB, TTWO, BABA, CCI, MCD, MA, ADBE, TAL, VNTV, AABA, V, UPS,

Bearish Order Flow: fl, dks, mnk, pxd, hp, lb, apa, coh, cah, hes, bti, aal, luv, eog, nue, ual, lvlt, slb, apc, ibm

Double Normal Volume: MOMO, BZUN, CRM, FL, MDT

Inside Days: mu, nvda, vz, nke, tgt, ebay, tsla, ntap, apc, apa, bidu, aaoi

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