Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Friday, the 26th of April.
GDP Slows
Gross Domestic Product (GDP) expanded at a tepid 2.5 percent annual rate, the Commerce Department reported on Friday, after growth nearly stalled at 0.4 percent in the fourth quarter. The dismal increase missed economists' expectations for a 3.0 percent growth pace. I guess a trillion dollars a year in stimulus spending doesn't get you very much anymore. Not to worry, as the Fed is supporting stock prices and that's all that seems to matter to this administration.
Watch Today's Video Update Here
Amazon, A Big River Of Opportunity
Yesterday, Amazon (NASDAQ:AMZN) announced their earnings and while there was some good news, there was also some bad news. The bad news is that their profits decreased by 37%. While most analysts were looking for a decrease in profits, it was a little larger than anticipated. Jeff Bezos continues to spend heavily on infrastructure and new technologies to the detriment of short-term profits. The Street seems to love this idea and it's reflected in the stock that everyone seems to love even though it's not making any money. In Amazon's conference call, the Amazon mantra was repeated again, “we believe putting customers first is the only way to create lasting value for shareholders.” How true that is. We will analyze Amazon's stock today using our Trade Triangle technology.
Is Gold In A Bull Or Bear Market?
Even though we have seen a substantial rally in the gold market, I am still not convinced based on our Trade Triangles that we are starting a new bull market. Only time will tell if the recent lows are in fact, the lows. I continue to think that this market will be choppy until it settles down and builds a base to move higher.
Soros And JC Penney
What is the man who beat the bank of England doing buying JC Penney(NYSE:JCP) stock? Is he seeing something that nobody else is seeing, or is this just another crazy bet? Well, here is what I will be doing: if JC Penney stock moves over $16.27 today, I will be covering a short position, taking a nice profit of $2.40 a share and moving to the sidelines. Perhaps that's what George is seeing, the fact that this market has been moving sideways for the last several weeks and has not made another new low could be viewed as bullish. So, based on our Trade Triangle technology, I will be on the sidelines if the $16.27 level is broken to the upside today.
Watch Today's Video Update Here
On Investor's Minds:
Japan - Kuroda will do whatever it takes ...
Black Swan - the Boston Marathon
North Korea - On Hold ...
Europe - Cyprus, Portugal and Ireland - economic risk
The FED - Hints QE is coming to an end
May 19th – Debt ceiling suspension expire
Have a great trading day,
Adam Hewison
President, INO.com
Co-Creator, MarketClub
Adam appears frequently on the following financial news channels as a guest expert. Click on any cable logo to watch Adam's latest appearance.
Last poll I saw had 47% approval rating for Bush, the same as Obama who seems to be sinking, but I don't know that it has anything to do with the market at this time. But hey, it was nice back in the good 'ol days if you were short in 2008.
It seems to be going up as there may be even more QE than ever to combat the deflation, or at least that is the hope. I suppose 1614-28 on the SP 500 is quite possible given the FOMC this week, and if the ECB cutes interest rates on Thurs.
Gee, tough choice..... do I be like hordes past, present and future who argue politics beyone futility and expend all my energy on it, or do I focus how to trade and invest better in order to help my family and I ? Hmmmm. Tough one.
The big problem is knowing when to get out of the market! When monetary policy changes, there will be a huge crash.
Just a dumb question here.
If the USD got devalued by 30 to 50 percent:
What would be the price action be for gold futures versus paper gold ETFs versus physical gold. I'm interested in the market psychology and being able to jump into the right arena if ever necessary.
Obama does deserve the ultimate recognition for this, which should be awarded when the bond market, dollar and stock market all collapse at the same time.
Where is all that extremly dark vision of a simultaneous crash of monetary systems from? Geeee.....
Adam writes: "I guess a trillion dollars a year in stimulus spending doesn't get you very much anymore. Not to worry, as the Fed is supporting stock prices and that's all that seems to matter to this administration".
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Call me selfish, but I am thankful that the stockmarkets, big business (and my stock portfolio) are booming under this administration.
But does President Obama deserve the ultimate recognition for this, as Adam insinuates? Isn't it the Fed (led by republican Ben Bernanke) that independently sets US monetary policy??
Agrre, the performance of stockmarkets was not so bad in latest weeks. The FED will do what will be required to hold the economy on the raise, IMO
"I guess a trillion dollars a year in stimulus spending doesn't get you very much anymore. Not to worry, as the Fed is supporting stock prices and that's all that seems to matter to this administration."
Don't bring politics into your analysis. I don't appreciate listening to your republican BS and that's a good way to continue to lose members and affiliates like me. Who elected this Federal Reserve Chairman? Republicans under Bush. Who supported massive Fed intervention and got the whole TARP and $800 billion of tax payer money paid to Wall Street started? Republicans and Bush. So what the hell are you talking about?
Everyone on Wall Street wants the Fed to continue to support stock prices. So you credit this Administration with being Wall Street friendly by supporting Wall Street and stock prices?-- but wait... in an earlier analysis you said this Administration was hostile to Wall Street because of increased regulations and ObamaCare. You are not even consistent in your criticism of the President. That's why you don't bring your subjective politics into the market. It's like bringing your religion into the market place.
The Bush Administration is no more to blame than the Obama Administration. The Federal Reserve is not some puppet where every decision they make is controlled by an Administration. Their going to do what they think is in the best interests for the Banking system.
Not every thing you dislike about the world can be laid at the footsteps of some Administration. Please keep your subjective political criticisms to yourself. You don't influence or control anybody else with your constant political references. You just piss many of your customers off.
I think most of your customers agree with you. Thanks for your insight!