Morgan Stanley Earnings Report

MS Morgan Stanley Stock Chart 4.17.19 Before Earnings

MS Morgan Stanley Stock Chart 4.17.19 Before Earnings

Buy Morgan Stanley on Earnings Weakness

Morgan Stanley (MS) reports earnings on Wednesday, April 17, with the stock in bull market territory since Dec. 24, but in bear market territory since its March 2018 high.

My call is to buy weakness to semiannual and annual pivots at $41.77 and $41.73, respectively, which have been magnets since Jan. 7. The upside is to its quarterly risky level at $49.87.

Earnings from the finance sector have been mixed so far this earnings season. Overall the banking system has been stable but it’s been hard to sustain gains post earnings.

Trading Day Ahead: Top 3 Things to Watch – Here’s a preview of the top 3 things that could rock markets tomorrow.

1. More Bank Earnings on the Way

Tech may take a hit tomorrow after IBM ‘s (NYSE:IBM) revenue came in below forecasts today.

2. Trade Deficit Seen Widening

It seems Wall Street reacts to every talking head on trade, but tomorrow brings some hard data.

3. EIA to Spring Surprise Draw in Crude Stockpiles?

Ahead of the Energy Information Administration (EIA) petroleum report due Wednesday, investors got an early insight into weekly U.S. supplies, showing a draw in supplies for the first time in four weeks.

Oil hits 2019 high above $72 on China growth, lower U.S. inventories

LONDON (Reuters) – Brent oil hit a 2019 high above $72 a barrel on Wednesday, propelled by steady economic growth in China and a fall in U.S. crude stocks which defied expectations and signaled firm demand, while global supply remained tight.

SPY ETF Chart 4.16.19

SPY ETF Chart 4.16.19

How to Spot Market Reversals

Very often your favorite stock or even the stock market is rising while the smart money is selling.

So the million dollar question is how to spot this sneaky but perfectly legal price action. The answer lies in reading the tape on the daily candlesticks.

Use “Today’s Institutional Activity” (order flow) AND “Institutional Follow-Through” to spot when price are CLOSING HIGHER, but closing below the open. Meaning a larger amount of red candlesticks during an uptrend.

This gives you clues that the longer term uptrend remains intact, but selling is dominating the close. It’s an old Wall Street bit of wisdom that smart money
controls the close.

If the existing trend is still strong, the daily candlesticks should be green and closing on or near the high.

This chart of the SPY ETF continues to move higher BUT is closing below the open with frequency. This means the smart money is selling.

Does that mean they are getting short? Not necessarily but it does mean they are selling into the close. Think about why you would do that.

About the Author

Leave a Reply 2 comments

John Rohmiller Reply

Pete thanks for your morning tips. They offer an opportunity to fine tune the skills I learned in your Order Flow Master class. You’ve kept me growing professionally.

    Info Trading Reply

    Hey John
    Thanks so much for taking the time to post a comment.
    I appreciate it
    Please feel free to send an email if you have any questions

Leave a Reply: