Hello traders everywhere. All three major indexes will end the week in negative territory after suffering a one-two punch from the Fed and President Trump. The move lower started on Wednesday when the Fed announced that they were cutting the key interest rate a quarter-point in effort to keep economy on track. That news caused all three major indexed to finish -1% lower on the day with the S&P 500 triggering a new red weekly Trade Triangle at the end of trading that day indicating a move to a sidelines position.
Thursday morning saw a bit of optimism with stocks climbing higher in early trading only to be chopped down when President Trump tweeted "Trade talks are continuing, and during the talks the U.S. will start, on September 1st, putting a small additional Tariff of 10% on the remaining 300 Billion Dollars of goods and products coming from China into our Country. This does not include the 250 Billion Dollars already Tariffed at 25%". That news sent the DOW lower losing -1% or 280pts on the day triggering a new red weekly Trade Triangle as it joined the S&P 500 on the sidelines.
The stock market continues to move lower as we end the trading week lower culminating with the NASDAQ joining the S&P 500 and DOW triggering new red weekly Trade Triangle after losing -1.39% as we head into afternoon trading. As we stand stocks are on pace to have their worst week of the year with the S&P 500 and DOW losing over -3% and the NASDAQ losing over -4%.
Key Levels To Watch Next Week:
- S&P 500 (CME:SP500): 3,027.98
- Dow (INDEX:DJI): 27,398.68
- NASDAQ (NASDAQ:COMP): 8,339.64
- U.S. Dollar (ICE:DX): 96.74
- Gold (NYMEX:GC.Q19): 1,416.00
- Crude Oil (NYMEX:CL.N19): 57.98
- Bitcoin (BITCOIN:BITSTAMPUSD): 11,370.78
Every Success,
Jeremy Lutz
INO.com and MarketClub.com
Picking a portfolio that loses money while a market is rising shows poor personal analysis of a stock's potential , rather than 'bad' market conditions. Rule of thumb for ' flying solo' Traders is to cut losses and ride gains, otherwise a poor stock/commodity position becomes an anchor.
The Markets are moved by the large Money Management Funds, and if you're flying solo and wanting to make money, follow the Trend, but have the technical skills ( and the money ) to ride the 'sawtooth' motion of a winner and the skill to know when you are near a top or bottom.
In trading there is always a winner and a loser ! It is a ruthless 'winner takes all' proposition....not every great Minor League ballplayer turned into even a mediocre Major Leaguer, and like Baseball it isn't ever about how great you were yesterday , it's always about what you are doing today !!
Final words....There is no mercy in the Trading Dojo !!
Due to Mr. Trump's tweet, Most of Stock Market participants may hurt seriously. At this stage, it is quite difficult to judge his ideology, also it is uncertain that whether his Tariff decision it will be proven true or falls.
But being a Neutral observer, I must point-out that as far as his motive is concerns, he always kept overall interest of America, in his mind behind taking any decision. I think, he is a first or only US president who dare to take such externally risky but required steps, and that's too, just, only and purely focused to protect wasted business interest of US Economy with a long term perspectives, so it may resulted in "Short term pain and Long term Gain" theory and I assume there is specific method behind his so called or so imagined psychosis, so instead of criticism or doubt, people of US must support and encourage him in his patriotic move.
I just warn about possible negative outcome in my yesterday's INO Blog, which i would like to repeat same one line here under.
" but as per my personal view, September on wards, there will be a danger zone, and we may found one more "Black September" any counter attack from China may be a reason therefore.
He needs to keep his mouth shut!! How many of his fiends and family knew about the tweet before hand????
Stocks fell because of trump. He says the stock market is doing great, I don't think so. My Portfolio doesn't show that. It was doing better before he stepped in.
I agree with Ruben, my portfolio sucks....I can't sell, I'm beyond cutting losses, just riding it out, Trump, what a nightmare.