Hello traders everywhere. The DOW and S&P 500 are both posting their first monthly loss in ten months. Although we seemed to be ending the month on a daily high note the trend of heading lower resumed this afternoon after the EIA reported that oil had a larger-than-expected build in U.S. stockpiles, which has pushed crude oil lower. Both indexes are down a little over 2% on the month and not quite able to erase the losses from the extreme volatility that we saw in February.
The NASDAQ has fared better only losing -.6%, but it is still posting its first monthly loss in the last seven months. The tech sector has been a standout in all of the market volatility, but it indeed hasn't been immune to it.
March could be a better month for stocks because when February ends lower, March performed best, averaging a 4.3% spring back in the S&P. One of those years was the tech bubble of 2000, when March was up 9.7%, the best performance since 1983. March 2009 was second best, with a gain of 8.5%. So we may just retest the all-time highers sooner than you think.
Key Levels To Watch Next Week:
Continue reading "First Monthly Loss For Stock Market" →
Hello traders everywhere. The stock market overall is trading at new three-week highs with the DOW, S&P 500 trading sharply higher for the third straight day triggering new green weekly Trade Triangles. The NASDAQ is trading higher as well, also triggering a new green weekly Trade Triangle.
Although the indexes are trading at three-week highs, they are still well off their all-time highs and have a lot of work to do to reach those levels again.
Do you think this correction is over, or we still due for a larger correction?
Key Events Scheduled For This Week:
- ECB President Mario Draghi speaks in Brussels on Monday.
- Powell testifies before a House panel on Tuesday. He'll discuss the Fed's Semi-Annual Monetary Policy Report and the state of the economy. Powell returns on March 1 before a Senate committee.
- Companies announcing earnings this week include Vale, BASF, Standard Chartered, Bayer, Lowe's, Galaxy Entertainment Group, Anheuser-Busch InBev, Peugeot, WPP, and London Stock Exchange Group.
- U.K. Prime Minister Theresa May delivers a speech on Britain's relationship with the European Union after Brexit.
- A barrage of data is expected out of Japan including retail sales and industrial production Wednesday, and capital spending Thursday.
Bank of Korea has policy decision and briefing on Tuesday.
- In China, the official and Caixin purchasing managers' indexes on Wednesday and Thursday respectively may show growth momentum slowed slightly in February, though the signal may be clouded by the holidays.
Key Levels To Watch Next Week:
S&P 500 (CME:SP500): 2,872.87
Dow (INDEX:DJI): 23,360.29
NASDAQ (NASDAQ:COMP): 7,501.58
Gold (NYMEX:GC.G18.E): 1,327.70
Crude Oil (NYMEX:CL.J18.E): 64.97
U.S. Dollar (NYBOT:DX.H18.E): 90.45
Bitcoin (CME:BRTI): 6,194.46
INO.com and MarketClub.com
Hello traders everywhere. Alibaba Group Holding Limited (NYSE:BABA) issued a NEW green monthly Trade Triangle on Tuesday (1/9/18) which means it could be time to go long the stock. Now, if you missed the alert or didn't see the Trade Triangle yesterday, the price action today has given you the perfect opportunity to enter the trade at a lower/better level on a bit of a pullback.
I believe that Alibaba is one of the more attractive stocks of 2018 based on the fact that it is the Amazon of the East, except it is growing faster and trading cheaper than Amazon. I look for Alibaba to produce another great year on the back of a truly impressive 2017 where we saw it produce an impressive 78% gain.
Key levels to watch this week: Continue reading "It's Time To Buy Alibaba" →
Hello traders everywhere. A better-than-expected jobs report has given life to a rather dull week for stocks. The U.S. economy added 228,000 jobs last month, according to the Bureau of Labor Statistics. Economists polled by Reuters expected a gain of 200,000. The unemployment rate held steady at 4.1%.
Average hourly earnings, a closely watched component of the report, rose 0.2% for November and 2.5% for the year. Economists expected a monthly increase of 0.3% or 2.7% for the year.
The Federal Reserve is scheduled to meet next week, and with the strong jobs numbers and a growing U.S. economy expect the Fed to stay on track and announce an interest rate hike on Wednesday.
The other big news today is Bitcoin, which will begin futures trading on the CBOE Sunday, Dec. 10th. At 5 pm EST using the symbol (XBT). Bitcoin has had a strong week heading into futures trading with a gain of 45% on the week, before a sell-off of 13% today, but it has backed off the lows of the session to only be down 5% this afternoon. Continue reading "Jobs Report Boost Stocks" →
Hello traders everywhere. Traders have apparently decided that an old standby is where they want to invest vs. the hottest sector of 2017. That old standby, the big banks.
I opened MarketClub's Top Stocks list this morning after the DOW and S&P 500 opened significantly higher to find that Bank of America (NYSE:BAC) was sitting at the top. In fact, three of the top 5 were big banks. It's a far cry from the tech sector that has been all the rage until recently.
This change in sentiment is primarily due to tax reform. On Saturday the Senate approved their version of the tax bill in a narrow 51-49 vote after a lot of work on the hill. Once the Senate and House of Representatives reconcile their respective versions of the legislation, the resulting bill could cut corporate tax rates to 20% from 35%.
The GOP, however, still needs to overcome future obstacles for the Senate and the House to craft a joint bill, which will then be presented to President Donald Trump. Republicans hope a deal will be achieved by Christmas.
Key levels to watch next week: Continue reading "Bank Stocks Lead The Way" →