| Before the open of trading tomorrow, PayPal will release earnings – and they'll be the first "fintech" company to report earnings. That means that their earnings will be the first look at the health of the consumer - which gives Wall Street the first indication of the true impact of President Donald Trump's sweeping tariffs and the prospect of higher import costs leading to rising unemployment and reduced consumer spending. As you can imagine, this has put investors on edge headed into this earnings release. Going into PYPL's report, the fintech sector has gotten sucker-punched: PayPal is down -23%, Block has fallen -32%, and Affirm has dropped -19%....all of which are losses that have been double the Nasdaq's -10% drop. Adding fuel to the fire... Wells Fargo said that "Tariff implications and macro have added another wrinkle to '25," adding that PayPal is particularly exposed to tariff-related volatility and macro uncertainty, given that 90% of its revenue comes from consumer-driven transactions." If that weren't enough.... We also get a report from United Parcel Service (UPS) tomorrow, which is widely considered another major barometer of U.S economic health. So, we've got a double whammy of economic canaries coming on Tuesday, which could make for some very tradeable moves. YOUR ACTION PLANAre all these worries warranted? Or, will Wall Street breathe a sigh of relief once they've confirmed that the worries were overblown? All of those answers will get revealed tomorrow – which sets up nicely for an Overnight Earnings trade inside The War Room! Last week I closed 7 trades for winners for a 70% win rate, including a 109.43% winner on HAL in 1 trading day. Click here to receive all my trade alerts during earnings season in real-time. Houston Meet-Up Is Less Than 1 Month Away! With our Houston Meet-Up less than 1 month away, this could be one of your last chances to claim your spot – and come get Karim's gold and silver! Mark the Date: Thursday, May 15th. If you're in the Houston area, make plans to come and meet up with myself, Karim, and your fellow Monument Trader's Alliance members! Secure your ticket here: https://www.eventbrite.com/e/the-2nd-monument-traders-alliance-meet-up-houston-tickets-1271002495679?aff=oddtdtcreator This is a perfect opportunity to discuss market volatility, trading strategies, and our top trades – all in person. Please make plans to join us at our Houston Meet-Up! Space is limited by the venue, so lock in your spot now. P.S. Here's what we'll be raffling off – so come meet up with us and win! Karim and I are looking forward to meting you. If you are in Houston or even an hour or two away, join us on May 15th. Click on this link for details: https://www.eventbrite.com/e/the-2nd-monument-traders-alliance-meet-up-houston-tickets-1271002495679?aff=oddtdtcreator
MONDAY MARKET MINUTE - Another Bell-Weather Reporting Tuesday United Parcel Service (UPS). If PayPal's earnings on Tuesday weren't enough, we also get a report from United Parcel Service, which is widely considered as another major barometer of U.S economic health. So, we've got a double whammy of economic canaries coming on Tuesday, which could make for some very tradeable moves. Tracking.
- Tariff Politics: This morning on CNBC, Treasury Secretary Scott Bessent put the responsibility for reaching a trade agreement on China, saying "I believe that it's up to China to de-escalate, because they sell five times more to us than we sell to them." How will this continue to play out? That's what we're watching each and every trading day.
- Wind Power in Danger: Now that the Trump administration is setting their sights on curtailing wind projects, the industry leaders (and those that have committed billions in them) are under serious threat. Dominion Energy (D) has over $10 billion invested in wind energy construction costs. Time to play puts?
| 
No comments:
Post a Comment