Market pattern suggests stocks will rip on earnings as trade fears fade

Posted On October 17, 2019 2:19 pm
By: admin

Bespoke Investment Group’s Paul Hickey expects stocks to buck a bearish earnings season pattern that emerged earlier this year.

Each time the backdrop supported upside, sell-offs ravaged the market due to the U.S.-China trade war, the firm’s co-founder said.

“In the first say four weeks of both of those earnings seasons, the market did very well and was trading higher,” Hickey told CNBC’s “Trading Nation” on Wednesday. “The rally was derailed not because of some weak earnings reports, but because President Trump issued tweets and suggesting … an escalation of the trade war.”

Hickey tracks the trouble in a chart showing trade-related S&P 500 sell-offs during the past two earnings seasons.

But this earnings… Continue reading at CNBC.com