ETF Picks from Gold and Metals Miners & Energy Companies. Plus Premium Single-Company Stock Picks Running Counter-trend.
After a look at key US Industry Groups and a review of upcoming market moving events for the week, we’ll share our ETF Picks with all subscribers, and Premium Stock Picks with our paid subscribers.
Be sure to read yesterday’s update to better understand overall market conditions. StockCheatSheets.com is an investing data service for intermediate trend-followers looking to profit from market moves lasting a couple of weeks to a few months. Rising markets, rising sectors and rising industry groups are when conditions are ideal for trading such a strategy. But there are always bullish stocks and ETFs rising counter-trend.
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Tech ETF XITK is noticeable for its Very Bullish Buying Pressure, and its leading indicator strength (Factors 9 & 10), suggesting a possible turnaround. Momentum was so strong Friday, it reversed the Intermediate Market Forecast Oscillator to Neutral Positive (weakly Bullish). With a Tailwind Score of 54%, XITK is the type of ETF that meets our “Wall of Worry” strategy - a riskier bet likely to produce more significant returns on a bullish recovery, but one that carries more risk because the overarching indexes are bearish. The ETF has Google as a component, which crushed earnings last week. That’s driving the performance. META (Facebook) is getting hammered at the moment, and it’s nearly 5% of the market cap of this ETF. Proceed with caution.
Entry Signals
In the coming week starting April 29, 2024, there are several key economic releases and earnings reports that could impact the markets:
Major Economic Releases:
Personal Income and Outlays - This report, which includes data on personal income, consumer spending, and the PCE Price Index (a key inflation measure watched by the Federal Reserve), is set for release on Monday, April 29.
Employment Cost Index (Q1) - Also due on Monday, this index provides insights into wage growth and the cost of employment, which are indicators of inflation and economic health.
S&P/Case-Shiller Home Price Index - Scheduled for Tuesday, April 30, this index tracks changes in the value of the residential real estate market across 20 metropolitan regions.
Consumer Confidence Index - This measure of consumer sentiment, which can impact consumer spending and economic outlook, will be released on Tuesday as well.
ADP Employment Report - An important indicator of private-sector employment, this report will be released on Wednesday, May 1, providing insights into job creation in sectors outside of government employment.
ISM Manufacturing Index and Construction Spending - Both reports are due on Wednesday and provide perspectives on manufacturing industry health and construction investment respectively
The next BLS jobs report, which will present data for April 2024, is scheduled to be released on Friday, May 3, 2024, at 8:30 AM Eastern Time This report is a crucial indicator of economic health, as it provides comprehensive insights into the U.S. labor market, including employment rates and job additions across various sectors.
Earnings Reports:
As of Friday, for Q1 2024, 67% of the companies in the S&P 500 have reported their earnings. Out of these, 75% have reported actual earnings per share (EPS) above analyst estimates. Notable companies reporting earnings this week include:
Advent Technologies Holdings Inc (Before Market Open on Monday)
Boqii Holding Ltd (Before Market Open on Tuesday)
Byrna Technologies Inc (Before Market Open on Wednesday)
Greenbrier Companies Inc (Before Market Open on Thursday)
These companies are among several others scheduled to release their financial performance results, which can provide insights into various sectors including technology, retail, and industrial goods
These economic indicators and corporate earnings results are critical for investors as they provide valuable insights into the health of the economy and specific sectors, potentially guiding investment decisions and market movements. Keep an eye on these releases for a better understanding of the market dynamics.
Spotlight Picks
The WisdomTree Japan Hedged Equity Fund (DXJ) is an ETF designed to provide exposure to the Japanese equity market while mitigating the impact of fluctuations between the U.S. dollar and the Japanese yen. This hedging strategy makes the DXJ an attractive option for investors looking to invest in Japanese stocks without worrying about currency risk.
DXJ primarily invests in dividend-paying Japanese companies with a significant portion of their revenues derived from exports, making it particularly sensitive to the performance of the global economy and currency changes. As of the most recent data, the ETF had major holdings in prominent Japanese companies, including Toyota Motor Corp, Mitsubishi UFJ Financial Group, and Japan Tobacco, among others
The First Trust Natural Gas ETF (FCG) primarily invests in companies involved in the exploration and production of natural gas. This ETF tracks the ISE-Revere Natural Gas Index, which focuses on mid to large-cap companies that derive a substantial portion of their revenues from the natural gas sector.
As of the latest data, FCG has a diversified portfolio of holdings, with major positions in companies like Hess Midstream LP, Western Midstream Partners LP, ConocoPhillips, EOG Resources, and Occidental Petroleum Corporation. These holdings underscore the ETF's focus on the energy sector, specifically natural gas.
It’s the production and refining side of the business catching the bid from investors. Natural gas itself has not performed well as of late. If the commodity price turns more bullish, the upside from here could be dramatic.
Regarding dividends, FCG has a history of providing dividends, with the most recent dividend rate showing a yield of approximately 2.41%
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