{"id":8787,"date":"2022-07-11T17:00:03","date_gmt":"2022-07-11T21:00:03","guid":{"rendered":"https:\/\/mtatradeoftheday.com\/?p=8787"},"modified":"2022-07-11T17:01:25","modified_gmt":"2022-07-11T21:01:25","slug":"this-friday-well-know-if-the-bear-is-for-real-heres-why","status":"publish","type":"post","link":"https:\/\/mtatradeoftheday.com\/this-friday-well-know-if-the-bear-is-for-real-heres-why\/","title":{"rendered":"This Friday, We&#8217;ll Find Out Whether the Bear Is for Real (Here&#8217;s Why)"},"content":{"rendered":"<p>It&#8217;s the biggest Wall Street debate of 2022&#8230;<\/p>\n<p><strong><u>Are we in a bear market&#8230; <em>or not<\/em>?<\/u><\/strong><\/p>\n<p>Everyone has an opinion.<\/p>\n<p>On the one hand, I could easily make a case that we <strong>ARE<\/strong> in a bear market&#8230;<\/p>\n<p>But on the other hand, I could easily make a case that we <strong>ARE NOT<\/strong> in a bear market&#8230;<\/p>\n<p>There are plenty of facts and statistics to support both arguments.<\/p>\n<p>However, if you&#8217;re looking for one final, conclusive and definitive answer, I&#8217;m here to tell you <em>it&#8217;ll come this Friday<\/em>.<\/p>\n<p>Specifically, the answer will be revealed when some of the major financial stocks report earnings.<\/p>\n<p>You see, as I&#8217;ve been telling War Room members for weeks, financial stocks are cheap right now. <strong><em>Very cheap.<\/em><\/strong> For example&#8230;<\/p>\n<ul>\n<li><strong>JPMorgan Chase <\/strong>(NYSE: JPM) trades at 1.3X book value.<\/li>\n<li><strong>Bank of America <\/strong>(NYSE: BAC) trades at 1.1X book value.<\/li>\n<li><strong>Goldman Sachs <\/strong>(NYSE: GS) trades <em>at parity<\/em> to book value.<\/li>\n<\/ul>\n<p>This means that if Goldman were liquidated tomorrow, the value of its assets at auction would be equal to the value of all of its shares at their current price.<\/p>\n<p>Historically speaking, buying financials at these levels has been a savvy idea.<\/p>\n<p>What&#8217;s more, all of these major financial institutions recently passed this year&#8217;s Federal Reserve stress tests &#8211; which means that they&#8217;re prepared to withstand any further market weakness (should we see any).<\/p>\n<p>JPMorgan and Morgan Stanley are scheduled to report earnings before the open on Thursday. Their results will give us a good idea of whether or not the financial sector is close to a bottom.<\/p>\n<p>But here&#8217;s why Friday is so critical&#8230;<\/p>\n<p>Before the open on Friday, the following financial stocks are scheduled to report their earnings:<\/p>\n<ul>\n<li>Wells Fargo<\/li>\n<li>Bank of New York Mellon<\/li>\n<li>BlackRock<\/li>\n<li>Citigroup<\/li>\n<li>PNC Financial Services Group<\/li>\n<li>State Street.<\/li>\n<\/ul>\n<p>Here&#8217;s what I&#8217;m looking at&#8230;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-8789 aligncenter\" src=\"https:\/\/mtatradeoftheday.com\/wp-content\/uploads\/2022\/07\/20220711_TD_CitigroupDaily_Chart.png\" alt=\"\" width=\"640\" height=\"382\" srcset=\"https:\/\/mtatradeoftheday.com\/wp-content\/uploads\/2022\/07\/20220711_TD_CitigroupDaily_Chart.png 640w, https:\/\/mtatradeoftheday.com\/wp-content\/uploads\/2022\/07\/20220711_TD_CitigroupDaily_Chart-300x179.png 300w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/p>\n<p><strong>Action Plan<\/strong>: Of these companies, <strong>Citigroup <\/strong>(NYSE: C) will be the stock that determines whether the bear market is for real. You see, of all these financial stocks, Citigroup is the cheapest. It trades at 50% of book value &#8211; the lowest valuation of any major financial company right now. If Citi can rally off earnings, then we&#8217;ll have a good idea that the market bottom is close. If Citi<em> CANNOT<\/em> rally, then we&#8217;ll know that there is more downside ahead &#8211; and that we&#8217;re in a bear market.<\/p>\n<p>To me, Citi&#8217;s reaction to earnings this Friday this will be the clearest, cleanest and most telling illustration of whether or not we&#8217;re in a bear market. No matter what happens, it&#8217;s critical that you&#8217;re prepared to trade this reaction accordingly &#8211; which is exactly what we&#8217;ll be doing inside The War Room. If you&#8217;d like to get in on the action, then you&#8217;re invited to join our elite group of traders right now.<\/p>\n<p><strong><a href=\"https:\/\/pro.monumenttradersalliance.com\/m\/2047697\" target=\"_blank\" rel=\"noopener noreferrer\">Click here to enter the room!<\/a><\/strong><\/p>\n<p><strong><u>Monday Market Minutes <\/u><\/strong><\/p>\n<ul>\n<li><strong>Target Range Up!<\/strong> Wells Fargo upgraded <strong>Range Resources<\/strong> (NYSE: RRC) to &#8220;Overweight&#8221; and moved its price target up from $44 to $49. The bank thinks the recent weakness is overdone, reflecting updated oil and gas price outlooks, as well as higher inflation expectations. <em>Tracking.<\/em><\/li>\n<li><strong>Twitter Drama?<\/strong> With Elon Musk terminating his $44 billion bid to buy the social media giant, there could be an elongated court battle ahead. Make sure you&#8217;re positioned if any major news triggers a tech sell-off.<\/li>\n<li><strong>Energy Stocks in Play.<\/strong> If energy corrects more, there could be a lot of potential in the sector for next winter. If there&#8217;s no resolution in the war between Russia and Ukraine, expect prices to take off &#8211; especially in the natural gas sector.<\/li>\n<li><strong>Earnings Season Kickoff.<\/strong> A number of high-profile reports are coming this week. Expect inflation and discretionary spending to be front and center. We&#8217;re positioning ourselves in The War Room for what <em>Barron&#8217;s<\/em> tech writer Eric Savitz says &#8220;could be the most important tech earnings period in years.&#8221;<\/li>\n<li><strong>Jolla Jumps! La Jolla Pharmaceuticals<\/strong> (Nasdaq: LJPC) went up 82% this morning after the company announced it had entered a definitive merger agreement whereby <strong>Innoviva<\/strong> (Nasdaq: INVA) will acquire La Jolla for $5.95 per share and an incremental $0.28 per share for additional cash proceeds.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Major Earnings Reports Will Give a Clear Picture<\/p>\n","protected":false},"author":2,"featured_media":8791,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1038],"tags":[822,1341,1473,375,442,624,23,1080,1618,1616,1392,1617,532,509,1393,1440,604],"mobile_app_tag":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v18.2.1 (Yoast SEO v22.2) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>This Friday, We&#039;ll Find Out Whether the Bear Is for Real (Here&#039;s Why)<\/title>\n<meta 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