On Thursday and Friday the focus becomes the finance sector with two regional banks on Thursday and two of the four 'too big to fail" money center banks pre-market on Friday.
The fundamental backdrop for the second quarter earnings season is that stocks continue to trade under a ValuEngine valuation warning with 69.1% of all stocks overvalued and with 33.0% overvalued by 20% or more. The basic materials sector is undervalued by 13.4% with the retail-wholesale sector 22.2% overvalued, and the finance sector 18.0% overvalued.
Reading the TableOV/UN Valued: Stocks with a red number are undervalued by this percentage. Those with a black number are overvalued by that percentage according to ValuEngine. VE Rating: A "1-engine" rating is a strong sell, a "2-engine" rating is a sell, a "3-engine" rating is a hold, a "4-engine" rating is a buy and a "5-engine" rating is a strong buy. Last 12-Month Return (%): Stocks with a red number declined by that percentage over the last 12 months. Stocks with a black number increased by that percentage. Forecast 1-Year Return: Stocks with a red number are projected to decline by that percentage over the next 12 months. Stocks with a black number in the table are projected to move higher by that percentage over the next 12 months. Value Level: Price at which to enter a GTC limit order to buy on weakness. The letters mean; W-weekly, M-monthly, Q-quarterly, S-semiannual and A-annual. Pivot: A level between a value level and risky level that should be a magnet during the time frame noted. Risky Level: Price at which to enter a GTC limit order to sell on strength.
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