How to Trade Goldman’s 20-Year Earnings Trend

Mark’s Watchlist

We’re talking earnings and buy-the-dip opportunities today. But before we dive in, listen up…

Goldman Sachs Group Inc. (NYSE:GS) reports earnings before the bell tomorrow. And for the past 20 years, this bank has followed the same pattern about 80% of the time:

If the report is good, the stock sells off.

If the report is bad, the stock’s bought up.

Almost every year, this is one of Kenny Glick’s best trades. And he’s going live in The Warlock’s War Room immediately after opening bell tomorrow to tell you how to use the VWAP to trade GS’s report – whether it’s good or bad.

Click here now to join tomorrow’s War Room session.

1. Verizon Communications Inc. (NYSE:VZ)

Looking at this chart of VZ, I’ve got one question – can it find a floor?

VZ, May-Oct 2021

 

Ever since Buffett cashed in on this name in mid-May, it cannot seem to find a bid.

So I’m wondering… how low can it go? When will the buyers step in? I’m getting interested in catching this thing at a low and riding the high back up. When it’s ready for that, I’ll let you know.

2. Bank of America Corp. (NYSE:BAC)

BAC reported earnings this morning – and the results were great. The bank reported $22.87 billion in revenue compared to the $21.8 billion estimate, and shares opened up 2.5%.

3. Citigroup Inc. (NYSE:C)

C also beat expectations – but the stock in trading down, unlike BAC.

C, Oct 2021

 

The IV here is dropping too, at a one-year low – handing us the perfect opportunity to get in cheap. I’m looking at buying calls on this name post-earnings.

4. Draftkings Inc. (Nasdaq:DKNG)

VZ may still be searching for its floor – but it looks like DKNG has found one:

DKNG, Aug-Oct 2021

I think DKNG might finally be ready to take off. If I see another bullish move today confirming that, then I’d be interested in cashing in on some calls.

VIX Traffic Light

Our VIX light is still yellow as I type – but many of my indicators have stopped blinking.

To recap, there are four main indicators I look at when determining the color of the VIX light:

1. SPY/VIX correlation
2. Volatility of the VIX
3. Implied volatility of the VIX
4. VVIX Index

Most of these indicators are red right now, meaning volatility should drop. But I don’t like to change colors until the end of the day – because there’s no telling what’ll happen before the close.

For more on how I trade the VIX, check out this free report.

Today’s Impact Money Trade

We’ve got a ton of lazy stock trades on industrial company Cornerstone Building Brands Inc. (NYSE:CNR):

As you can see, all of these trades were made on the CNR March 18, 2022 $15 calls.

With CNR at $14.50 right now, these big-money traders are betting on a 3% jump by early next year.

I’m not hopping on this one quite yet, but this big volume has definitely put CNR on my Watchlist today.

Sincerely,

Mark Sebastian

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