| | | | January CPI
Don’t forget that I’ll be live with Kane Shieh, Lance Ippolito, Nate Tucci, Alex Reid, Roger Scott, Chris Pulver and Graham Lindman for a special Inauguration Roundtable where we’ll discuss Trump’s impact on the market.
It’s going down at 3 p.m. ET TODAY, Jan. 15, so stay tuned for a link to join!
As for today’s “Morning Monster”...
Consumer Price Index (CPI) numbers are out in the premarket today. Are the numbers spicy or chill? I do think it is odd PPI came out before CPI, this isn't "typical" and might be indicative of a potentially bigger reaction today.
Come join me as we dive in and see what’s moving!
Plus, as always, we have stocks popping and dropping so come find out what is moving this morning as I look for stocks and do some live premarket analysis on SPX, SPY, NDX, QQQ, Russell, IWM and other stocks that are potential plays for the day.
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Tesla and Banks Set to Move Markets as Earnings Begin
Earnings season is upon us, and this time, the spotlight for me is on two key areas — banks and Tesla (TSLA).
Both have the potential to create ripples across the markets, and understanding their setups heading into earnings is critical for traders looking to stay ahead of the game.
On Deck: The Big Banks
Big banks kick things off this morning, and the stakes couldn’t be higher. Many of these stocks have already retraced significantly, setting the stage for a potential bounce.
Bank stocks, often a barometer for the broader Financials sector (XLF), tend to see increased volatility during earnings season, though they’re not generally big movers.
Historically, earnings in Financials have been a mixed bag. Strong results can signal economic resilience, while disappointments often highlight deeper cracks in the system.
This time, traders should focus on how banks are managing rising interest rates and their impact on lending and net interest margins.
Keep an eye on leveraged ETFs like the Direxion Daily Financial Bull ETF (FAS) for amplified moves in the sector. While these tools can be powerful, they come with risks — so be sure to manage positions carefully.
Tesla: A Wild Card
Tesla (TSLA) reports on Jan. 29, and as always, this stock has traders divided.
While the company’s long-term growth story remains intact, its short-term earnings moves are notoriously difficult to predict.
Over 70% of the time, Tesla sees a drop following earnings — but the remaining 28% can deliver explosive gains. Importantly, there’s no clear correlation between pre-earnings price trends and post-earnings moves.
In other words, whether Tesla’s rallies or declines heading into earnings doesn’t necessarily foreshadow the actual result.
This time around, Tesla is holding key support levels and even showing signs of a potential reversal. If the stock breaks higher ahead of earnings, it could attract significant bullish momentum.
However, traders should remain cautious and avoid letting personal bias cloud their judgment. The best way to play Tesla is to focus on clearly defined technical setups and stick to your plan.
The Bigger Picture
Earnings season isn’t just about individual stocks — it sets the tone for the entire market. If banks deliver strong results, it could boost confidence in the broader Financials sector.
Similarly, Tesla’s performance will influence sentiment in the Consumer Discretionary sector (XLY) and even the tech-heavy Nasdaq 100 (QQQ).
As always, risk management is key.
Whether you’re trading individual stocks or leveraged ETFs, make sure you have a plan for protecting profits. And remember, no single earnings report — not even from a major stock like Tesla — should dictate your overall market view.
Stay disciplined, trade smart, and keep your eyes on the setups that offer the highest probability of success.
Earnings season is here — make it count.
Today’s Daily Chart Setup: Oil States International (OIS)
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