Trade Setups In Farms, Ranches… Computers?

2021-06-30

What do farm and ranch supplies have in common with semiconductors?

They are part of stock market sectors on the move with some run into earnings possibilities.

Companies that sell farm and ranch supplies have proven resilient through the pandemic economic downturn. Expectations are they will continue this strength with continued sales and earnings as the economy further regains its footing.

Tickers within semiconductors are showing signs of heating up as they approach earnings reports following a period of lackluster performance. Simpler’s traders aren’t betting the farm on semiconductors, but are looking for specific tickers with breakout potential.

Both of these sectors have a variety of tickers with differing levels of strength, momentum, and earnings expectations. Simpler’s traders readily turn to these sectors to find tickers with a high probability for any run into earnings potential.

A run into earnings play presents traders with an opportunity for long setups with more predictable price movement to the upside as earnings approach. This is a foundational play among Simpler’s traders.

New and seasoned traders can pursue possible gains triggered by earnings announcements if they have the right tools and strategies in place. The volatility of earnings season adds an element of risk, but there are ways to learn how to profit from the sudden moves triggered by a company earnings call.

Setups to the upside in these sectors are welcome in a market that is showing uncertainty and overextension that gives pause to our team as they guard against a sharp pullback.

We Saw: Market remaining mostly flat —

  • Robinhood hit with $70 million fine before IPO
  • Computer chip shortage stalling vehicle production
  • S&P positive by .18% for new record, Dow jumps higher

We’re Watching: “Heightened potential” for correction to overextended market —

  • How world players will affect summer oil prices
  • Setting up for another round of run into earnings
  • Setups in: WYNN, CARR, NVDA, AMZN, MU