October 13, 2017 — Let’s take a look at the long LGIH breakout trade. - Simpler Stocks

The markets got off to a weak start this morning, managed to advance slightly around midday, but turned lower again in the afternoon. The Dow was down 32 points, the broader S&P 500 was down 4 points, and the NASDAQ was down 12 points. The third-quarter earnings season has just commenced. Today we heard from JPMorgan, which moved lower. Shares of Citigroup also slipped today after announcing earnings. Tomorrow, we will hear from Wells Fargo and Bank of America.

Technically, equities have held up well lately. However, with valuations elevated, traders will likely want to see solid third-quarter numbers and encouraging guidance to press forward from here.