Stock Market Early Morning Insights – October 27, 2016

Stock Market Early Morning Insights – October 27, 2016


I will be conducting a new multi-week webinar educational series right around November 1st and be live trading my money not just be dealing in theory which is what many “educators” due. I am concerned with the right side of the chart, not only with what has happened in the past. I’ll  be putting out a video later this week about what I plan to cover, but as usual, I will be flexible. Contact me directly at if you are interested in attending.  HGSI software is a requirement.

The S&P 400 mid-cap in the S&P 600 small-cap indexes are in much worse shape than the NASDAQ. Both are down in their critical support areas which suggests that the so-called risk trade for the broader markets is coming off in the smaller stocks.

In a bull market, we often see the small and mid-cap stocks leading the way because of confidence that stocks in general will go higher. We are certainly not seeing that now, and if you compare the charts of the NASDAQ composite to the S&P 400 mid-cap in the S&P 600 small-cap, they look a lot different. In a bull market, all boats rise, and we are not seeing this now.

The exception for the risk trade stocks is the Semiconductor Devices. NVDA is the leader of this group, and it reports earnings on November 3 which could have a dramatic effect on the group in either direction. Nvidia has a beautiful chart, and if you want to study a chart which is an example of multiple swing trading opportunities, study Nvidia’s chart. NVDA has appeared 63 times in 2016 in the Top 50 GIR.

Banking stocks have been doing well and many are past their earnings release dates. If you are prospecting on the long side, it is a good idea to look at stocks in the financial sector whose earnings are out-of-the-way. This is a list of financial stocks whose earnings are out, and many look like they want to go higher. Use your own judgment, and control your risk.


This morning stock index futures are positive. TSLA turned a profit and was up around $8 after the bell. Chipotle continues to struggle due to the E. coli scare several months ago, and earnings missed by a mile. Earnings were expected to be $1.59 but they came in at $0.27! Today is a heavy earnings day with around 300 stocks reporting.

I plan to start my new webinar series next Tuesday, November 1. If you want to attend, click on this link. If you prefer to pay by check, just let me know that you will be sending a check. The prices can be found at the link below. These webinars are all about HGSI, getting the most out of it, and controlling your risk. There will be a heavy emphasis on prospecting with VPA and using VPOC 10/10 is an entry method. We will be looking for low risk, high probability trades, and I plan to trade live money again. I hope to put video out later today explaining what I plan to cover during the multi week webinars, but I will remain flexible. All sessions will be recorded for those of you who cannot attend after the market closes on Tuesdays and Thursdays. Former webinar attendees only pay $100 for the sessions.


Stock Market Early Morning Insights is a product of Ron Brown Investing. The complete report and all the charts are produced daily before the market opens and distributed by email to subscribers. Reports published on the HGSI Blog are delayed and do not contain all the charts.  For more information about subscribing use this link. MORE INFO