Published November 10th 2023

Daily Brief - ☀️ Look at earnings

TLDR: Don’t hit the SELL button before a look at fundamentals.

Trailing EPS - chart

We’re all on the same boat, this kind of market just makes you want to short it - but beware.

For one, earnings are doing mighty fine. Pity only that manufacturing PMIs are down, whilst at least Services are up.

Secondly, the market has already sold off. Certainly if you look at the chart of SPX you might disagree, but remember that this market is up thanks to 7 stocks. A lot of stocks have already explored their lows - by comparison, TOGGLE finds 230+ deep value stocks in the market today.

All of this to say that - as much as one would like to short this market, you’d be better served by waiting to see what happens to the rest of the earnings season.

What's happening in the markets?

This section is powered by Open AI connected to TOGGLE AI

The S&P 500 is on fire, marking its eighth consecutive day of gains.

According to the Toggle Scenario, historical trends suggest that such impressive moves could persist for a few more days before potential downside risks emerge.

Notable companies like ServiceNow Inc, Microsoft Corp, and Synopsys Inc are mirroring the index's success, boasting streaks of 10, 9, and 9 consecutive positive days. ServiceNow stands out, with a remarkable 18% surge during this period, and a prescient Toggle insight released last Wednesday perfectly predicted this upswing.

On the flip side, Pinnacle West Capital Corporation, Exxon Mobil Corp, and Abbott Laboratories are experiencing consecutive downturns for 5, 4, and 4 days respectively. Toggle's recent observation pointed out that Abbott Lab's implied volatility hit a recent low, historically indicating a median upside potential in the stock over the next month.

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Earnings Update: Trade Desk reports tonight

Trade Desk reports tonight

Trade Desk prides itself on having a high customer retention rate but has spending on digital advertising risen enough to boost revenues?

Discover how other companies could react post earnings with the help of TOGGLE's WhatIF Earnings tool.

Asset Spotlight: Positive Seasonality for the S&P 500

Positive Seasonality for the S&P 500

Toggle AI analyzed 28 years of historical data and observed that the S&P 500 tends to exhibit positive seasonality over the following 1 month. Read full insight!

General Interest: Technology is Eating Everything

Image of robots making money fly

What happens when energy, intelligence, and labor get cheap?

The answer is that capital wins. Unfettered by the pesky relationship with labour, capital will be free to fly to new heights. And the winners, amongst those who hold capital, will be the ones who hold the tech advantage.

Back in the 70s, tech advantage was all about hardware. In the last 20 years, pre-eminence was decided in software space. But once we have (a) intelligence smart enough to drive hardware and (b) cheap energy, we have reached a sci-fi milestone: robots.

Read more here on the Not Boring blog.

ps impressive how clearly one can see the image above is AI generated.

Daily Brief - ☀️ Look at earnings

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