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Before you Trade Today: Know the Economic Calendar! Also See This Weeks Most Anticipated Earnings (Note: Red Indicates an Earnings Loss [Not Miss] Consensus), Yesterdays Insider Buys & Yesterdays Unusual Call Options Volume.

INDISER BUYS / UNUSUAL CALL VOLUME / UNUSUAL PUT VOLUME

TODAYS COMMENTARY Get a Cup of Coffee & Enjoy Catching Up!

Earnings are Lagging: Last night I did a deep dive on earnings so far this quarter. Bullish sectors include agricultural inputs, some chemical companies, semiconductors, freight/shipping, banks (based on future Fed rate hike expectations), energy/oil, & there is some anecdotal evidence that apparel did well but its too early to tell. Profitable tech is roughly 50/50. Most everything else is underperforming. Revenues are often up, but EPS is down. Inflation is to blame. The cost of labor, energy, & inputs continue to be a barrier to increased profitability & earnings beats.

Supply Chains are Still Gummed Up: Supply chains continue to be an issue. The cost of shipping goods have absolutely skyrocketed. While getting my vehicle serviced I met a fella who complained that it would take a month to get a new radiator for his Jeep. I also read a recent report that building materials can take a month or two to arrive after the order is placed … (February is usually the busiest time of year for building materials as builders stock up for the Spring/Summer seasons). Indeed there is little doubt in my mind that the rapid increase in the money supply is the largest contributor of inflation, however the supply chain crisis also doesn’t help. Also you would be surprised how little attention is given to high demand & increased cost of shipping in the media. In late December we were made to believe that it was all working itself out. Stories on shipping difficulties began to decline after the holiday season but prices remain at near all time highs.

Headwinds Ahead: I have a responsibility to warn my subscribers that bullish companies are going to be increasingly hard to find in this environment. I therefore owe it to you to scrutinize my picks more than ever as a result of REAL headwinds. The quick turnarounds we were accustomed to in the past are simply not going to happen in this economy. A swing that may take a month or two last year may take a quarter or two this year. Therefore I think it prudent to buy in slow & only average down when it hurts. I think it best to warn of these conditions amid the distraction of outstanding Google earnings. While everyone else is monitoring the shiny object, now is the time to plan ahead & adjust accordingly as stocks rebound. Indeed I expect markets today to be lifted by Google, but the uncertainty of general market is warranted. Most companies remain profitable, but an adjustment in long term valuations & expectations are necessary.

Buy List Update: Two companies on the BUY LIST reporting earnings today

IMPORTANT REMINDER: INFLATION DATA TO BE RELEASED ON 02/10/2022

AVERAGE STATS ON ALL STOCKS ON THE BUY LIST AS OF MARKET CLOSE 01/27/2022 (FINVIZ & YCHARTS)

• Average Trailing PE: 11.39 vs S&P (27.24)

• Average Forward PE: 8.79 vs S&P (20.40)

• Average PS: 0.92 vs S&P (2.88)

• Average PEG: 0.71

• Average PB: 1.68 vs S&P (4.38)

• Average Current Ratio: 2.26

• Average Insider + Institutional Investment: (83.83%)

• Average Debt to Equity: 0.431

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Significant News Heading into 02.02.2022:

• Nasdaq futures rise 1% after its third day of gains, Alphabet pops on strong earnings

• Treasury yields fall as investor focus turns to ADP employment report

• Japan’s Nikkei 225 rises almost 2%; multiple Asia markets remain closed for Lunar New Year holidays

• European markets climb amid global gains; Ocado up 6%

• OPEC+ Seen Hiking Supply Again Yet Data Shows It Struggling

• Oil Holds Near Seven-Year High as Traders Count Down to OPEC+

• Veteran strategist David Roche warns markets could be at a ‘turning point’ toward a bear market

• ‘It’s going to be a year where we are shocked by the volatility,’ BofA’s Savita Subramanian warns

• Cramer’s Investing Club: Alphabet’s crazy earnings growth proves once again it’s a must own stock

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PAID CONTENT IN THE PAYWALL BELOW:

• 16 Stocks near/at/above the Buy Zone (Waiting to Swing).

• 56 Stocks on the Price Based Assessment Watchlist

• 13 Stocks on the Stocks Under $20 List (Read the Warning/Disclaimer)

• 6 Stocks on the Highly Speculative Highly Volatile Small Cap List (Read the Warning/Disclaimer)

👉CLICK HERE TO SEE THE DETAILS OF EVERY STOCK ON THE BUY LIST (AND SEE THE PRICE ASSESSMENT BASED WATCHLIST / THE STOCKS UNDER $20 LIST & THE HIGHLY SPECULATIVE LIST)

LOGIN INSTRUCTIONS: You will need to login to see the detailed list. The “email login link” will send the link to login directly to your inbox (Click the link & it will automatically log you in). You can also choose the “login with password” option. You will need to set up a substack password for this option.

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