Dan Passarelli, CEO - Market Taker Mentoring

Well, there's been a whole bunch of talk about recession being caused by rising interest rates and all that and you've heard nothing but that when you listen to the financial news and it's really, really important. But I think in a lot of ways the financial press is missing some really important data.

Take Delta Airlines for example, okay, Delta has earnings coming out tomorrow and we're going to get a lot of visibility on what's going on in the airline industry. See, today, the day before Delta has earnings coming out, the stock was up over 7% at one point today.

Now that's really, really uncommon. Why is that? Well, it's because love, Southwest Airlines got a boost from an analyst upgrade. American Airlines gave some really positive guidance and the airline industry, frankly, looks like it might be poised for a pretty good year going into the future because of all the pent up demand.

I did a Bloomberg Television interview today with Abigail Doolittle and we were talking about this. What I believe is that what we're seeing here is, since the beginning of the Pandemic, we've seen what I call a sector based economy. Okay? So when stocks fell, when the Pandemic first started, not all stocks fell. Some did, but some did really well. Amazon and DocuSign and Zoom. Right? It was very sector based. And then when the economy started recovering, some stocks recovered and some actually ended up selling off. That's when Amazon really stopped doing so well. Right?

When it comes to inflation, some stocks have been getting hurt by that and some haven't. And they've been able to weather the storm and even thrive. So the bottom line is: this earnings season, I believe, is probably one of the most important in the last 20 years, for sure, probably 30 years. So I'm going to be watching not just Delta Airlines earnings tomorrow, but all the earnings coming out this season, which I do every earnings season.

And if you're interested in learning more about how I think about earnings and trade them, I have a special complimentary webinar coming up that I would love to have you attend so that I can share all my thoughts with you on earnings and how they work and how I trade them. And you can join by going to the link that's going to pop up right after this video. (go to: markettaker.com/reg)