[Charts] Early Earnings and Venture Up!

Lou Basenese

Friday, October 22, 2021

It’s Friday in the TTD Nation.

So what, you say? Well, welcome! You must be a newbie.

Here’s the dealio...

Every Friday, I curate a handful of graphics to convey some important investment insights.

All it takes is a quick glance — and you’ll be up to speed and poised to profit.

In this week’s edition, we’re gauging the health of corporate earnings, and in turn, the health of the current bull market. Then, to uncover the next hot trend, we’ll move onto tracking the money flows of venture capitalists.

So let’s get to it...

Earnings Check-Up

Last week, I shared three key statistics to track during earnings season to predict where the overall market is going, and to uncover the stocks that are most likely to keep charging higher.

The good news? Earnings and sales “beat rates” are running extremely high already.

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Granted, we’re only about 100 companies into the reporting season. But there’s no denying the bullish implications.

Especially since company guidance has been overwhelmingly bullish, too.

In fact, the guidance spread stands at over 10%, with 12.6% of companies raising guidance versus only 2.1% lowering guidance.

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Per Bespoke Investment Group, “That’s about as strong as guidance raise rates ever get.”

Indeed! So it’s high time for us to be on the lookout to invest in companies reporting “triple-plays”: earnings beats, revenue beats, and increased guidance.

Don’t be surprised if I share one or two such opportunities with you here next week.

Speaking of opportunities...

Venture a Guess

As I explained yesterday, money flows from venture capitalists can tip us off to the next hot emerging technology trend.

Well, forget about just going “all-in” on robotics and artificial intelligence right now. Venture capitalists are going “all-in” period.

Case in point: Global venture funding hit a new record, increasing 105% year-over-year to more than $158 billion.

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Again, we couldn’t ask for a more bullish leading indicator for tech development, deployment, and in turn, profit potential.

Once again, I’ll do my best to turn this valuable data into specific, actionable trade ideas for you. So stay tuned!

Ahead of the tape,
Lou Basenese
Lou Basenese


Tags: Earnings

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