Aug 16, 20201 min

💔 He's just not that into you

Updated: Aug 19, 2020

Hi friends,

We need to talk. All we want is commitment but the market's sending mixed messages this week...

It was a good effort on rallying but the markets closed this past Friday with the following results (8/14/20):

  • Dow Jones Industrial Average: 27,931.02 +34.30 (+.12%)

  • S&P 500: 3,372.85 -.58 (-.02%)

  • Nasdaq: 11,019.30 -23.20 (-.21%)

  • Russell 2000: 1,577.88 -1.91 (-.12%)

Check out these notable earnings in the coming week (8/17/20-8/21/20):
 
 8/18/2020:

  • HD

  • KSS

  • WMT

8/19/2020:

  • LOW

  • NVDA

8/20/2020:

  • EL

8/21/2020:

  • DE


 It's the battle of the bands this week. By bands, we mean home improvement companies. Let's take a peek specifically at Home Depot:

  • Last 4 earnings report:

    • 2019Q2: Beat

    • 2019Q3: Beat

    • 2019Q4: Beat

    • 2020Q1: Miss

  • 3-year EBITDA

    • 2017: Improved from 2016

    • 2018: Improved from 2017

    • 2019: Improved from 2018

  • Technicals:

    • 3-month: ~ +14.25%

    • 1-year: ~ +38.36% 

    • 5-year: ~ +139.05% 

We'll see which company is more metal this week. For the year, Home Depot retraced past its peak right before the Coronavirus dip, going up by another 18% from the previous high. Not a lot of blue chip, dividend paying stocks have done this. Keep an eye on the earnings for HD this week and make your moves accordingly (if they do well vs. if they face plant). Fundamental analysis is nice and all, but covered calls are more fun. Learn all about it in our Level 1 Courses!

Until next time!

- Call to Leap Team

The following article is strictly the opinion of the author and is to not be considered financial/investment advice. Call to Leap LLC and the author of this article does not claim to be a registered financial advisor (RIA) or financial advisor. Please visit our terms of service and privacy policy before reading this article.