Investing around the Big Game?

The Every day Breakdown seems on the earlier championship seasons for skilled Philadelphia sports activities groups and the stats are…not nice.

Monday’s TLDR

Earnings are nonetheless in focus
CPI report is on watch
META’s report win streak 

Weekly Outlook

Is there a inventory market curse in Philadelphia? Whereas hundreds of thousands are celebrating the Eagles’ victory final night time, others have identified an attention-grabbing coincidence for markets to underperform when the Metropolis of Brotherly Love secures a championship. 

As an example, there’s the 1929 inventory market crash when the Philadelphia Athletics received the World Sequence, together with the 2008 monetary disaster when the Phillies received the World Sequence. Then there’s the final Eagles’ Tremendous Bowl victory in 2018, when the S&P 500 had its worst 12 months since 2008. 

Do the championship winners have an effect on inventory markets? In fact not! And it wouldn’t be advisable to make funding choices based mostly on sports activities championships. However the historical past positive is attention-grabbing. 

As for this week, just a few notable earnings stand out. They embody Coca-Cola and Shopify on Tuesday, Reddit and Robinhood on Wednesday, and Coinbase on Thursday. 

As for financial knowledge, just a few notable reviews stand out. They embody the CPI report on Wednesday and retail gross sales on Friday. These reviews will give us the most recent replace on inflation and the way the patron is doing.

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The setup — McDonald’s

McDonald’s reported earnings this morning, lacking on income expectations and reporting roughly in-line earnings outcomes. Regardless of the blended headline figures, shares are inching larger in pre-market buying and selling. 

Keep in mind, the inventory will commerce based mostly on the corporate’s outcomes, in addition to administration’s convention name. 

The current inventory motion has been promising, as MCD cleared downtrend resistance (the blue line) final week. Nonetheless, $300 has been a key resistance stage for the inventory for a number of years. 

MCD is buying and selling slightly below $300 in pre-market buying and selling. Keep watch over this stage at present and this week. If shares can clear this space, extra bullish momentum might ensue. 

On the flip facet, if shares are unable to clear $300, then this stage might stay resistance and momentum might wane.  

Choices

For some traders, choices may very well be one various to invest on MCD. Keep in mind, the danger for choices consumers is tied to the premium paid for the choice — and dropping the premium is the complete danger. 

Bulls can make the most of calls or name spreads to invest on additional upside, whereas bears can use places or put spreads to invest on the features truly fizzling out and MCD rolling over. 

For these seeking to be taught extra about choices, contemplate visiting the eToro Academy.

What Wall Road is watching

AMZN – Shares of Amazon fell about 4% on Friday after the corporate reported earnings. Regardless of beating on earnings and income expectations, the agency’s cloud outcomes have been barely under analysts’ expectations, whereas its outlook was barely under estimates as effectively. Take a look at the charts for Amazon. 

META – On Friday, Meta prolonged its profitable streak to a formidable 15 consecutive classes. Shares are up nearly 17% throughout this stretch because the inventory continues to chug larger. The final down day for Meta was on January sixteenth. 

Disclaimer:

Please observe that resulting from market volatility, a few of the costs might have already been reached and situations performed out.

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