We are three weeks away from the election, President Trump is cured of COVID, and markets are looking like they could go up or down.
The major catalyst within markets, therefore, is the kick-off of earnings season.
Up this week are financials and the big banks. Bank stock prices haven’t been moving around a lot this year, and there have been plenty of other trading opportunities to jump on in the meantime. However, banks are still relatively cheap because of this.
The key thing to consider in earnings season is how the market reacts to the news. It’s not the reports themselves rather than what the investor sentiment is behind the numbers. For example, will a stock drop after some good news (bearish situation) or will a stock rally on some average news (bullish situation)…
Watch the full interview for the key indicators and the hot sectors to watch this earnings season.