Let’s look at another chart I found in the LTA scanner and we discussed in the trading room. We’ll discuss what I like about it, what potential I see and how I might trade it. If you aren’t already in the room, you might think about taking a 60-day trial for just $49.
DISCLAIMER: The stocks we talk about are not recommendations to buy or sell. You must evaluate the risks and rewards yourself. Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is financial or trading advice. All information provided is intended for educational purposes only. You are advised to thoroughly test any new trading approach before implementing it. Past performance does not guarantee future results. Terms of Service
With a partial trade deal, no new tariffs, and the FOMC
behind us, the market breathed a sigh of relief, setting new records in the DIA,
SPY and QQQ. Now the question is, has
the market already priced in this good news, or will the bulls continue to find
inspiration allow for a Santa Clause rally into the New Year? Although the full House is preparing to vote
on the presidential impeachment, it has thus far only served as a distraction
rather than impacting this tenaciously bullish run. As of now, the bulls remain in control, and the
index trends continue to point higher. As
always, stay focus on price action watching for clues of change.
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Overnight Asian markets closed mixed but mostly lower even
amid better-than-expected industrial output.
Across the pond, the Stoxx 600 hits new record highs in response to the US/China
deal as European indexes see only green this morning. Not to be outdone, the US Futures point to modest
gains at the open ahead of several economic reports with PMI numbers the most potentially
market-moving.
On the Calendar
On today’s Earnings Calendar, we have 22 companies reporting
quarterly results, but there are no particularly notable reports.
Action Plan
The nine ladies are dancing!
Friday was a day of wild volatility as the market reacted to
the US/China trade news. Removing the
December tariffs proved to be a big relief to the market but as we learn about
what’s in the trade deal, it will be interesting to see how the market responds. Has the deal already ben priced in, or will it
continue to inspire the bulls? One thing
for certain with new record highs printed in the DIA, SPY and QQQ on Friday the
trend is up and the bulls at this point remain in control.
With just nine days until Christmas, trade deal, tariffs
& FOMC behind us, the stage may be set for a Santa rally taking us right
into the New Year. One possible stumbling
block is the impeachment process that may serve as a distraction but, the market to this point has had little concern
as the political drama heads to the full House for a vote. As I write this note, the Futures point to bullish
open ahead of manufacturing, PMI, & housing numbers. Be careful chasing the morning gap by waiting
to see if buyers follow-through to avoid the possibility of a pop and drop bull
trap.
Markets were indecisive Friday, as details and implications of the first phase of a US-China Trade Deal and the strong Brexit-affirming majority in the UK were being digested. The SPY and DIA closed up 0.06% on Doji candles, while the QQQ closed up 0.33% on a Spinning Top candle. In perhaps an outsized move, the VXX closed down 4.14% as a major source of risk was removed as an overhang. T2122 fell back into the mid-range at 63.43.
Over the weekend, trade negotiator Robert Lighthizer made a lot of news. In the first set of stories, Lighthizer acknowledged a series of concessions on the USMCA deal given not to Mexico and Canada directly, but to US Democrats. To gain passage of the deal, USMCA now includes protections for labor, the environment and excludes some industry-specific prohibitions such as the Pharmaceutical Industry wanted to prevent cross-border drug purchases.
In the second set of articles, he gave more details on the Phase-One Trade Deal with China. He said that while tariffs will be rolled back from 15% to 7.5% on $120 billion in Chinese-made goods, but that the 25% tariff on $250 billion in goods will remain. Of course, all new (planned) tariffs were canceled. Perhaps more interestingly, he also claimed the deal would result in an $80 billion increase (to $200 billion) in exports to China over two years. However, he also said Chinese purchases of US Ag products would be $16 billion (not the $50 billion President Trump claimed Friday). Lighthizer said that plans are to sign the deal during the first week of January.
Lighthizer’s finale for the week was to break the WTO quorum by stopping the appointment of replacement members. This essentially means the WTO is paralyzed and can no longer rule on trade disputes. This gives every country the ability to do whatever they want on trade. And with the US being the biggest economy and major superpower, we can continue to pursue President Trump’s protectionist/confrontational policies without any legal pushback.
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The major economic news for Monday includes Dec. NY Empire Mfg. Index (8:30 am) as well as Dec. Mfg. PMI and Dec. Services PMI (both at 9:45 am). There are no earnings scheduled for today. It is worth noting that Sunday night BA reported it was close to making a decision to either temporarily halt or completely discontinue production of the 737 Max. It seems no FAA approval and order cancellations have seriously impacted that plane’s viability at least in the short-term.
Overnight, Asian markets were mixed and there remains uncertainty over the actual terms of the US-China Trade deal. In Europe, markets are all bullish, with the FTSE up 2.25% (still flying the election is out of the way). As of 7:30 am, U.S. futures are pointing to a gap higher of between a quarter percent (DIA) and half a percent (SPY and QQQ).
Favorite Charting Software
The major economic news Friday includes Nov. Core Retail Sales (8:30 am) and Business Inventories (10 am). There are no major earnings reports on the day.
Overnight, Asian markets were mixed. In Europe, markets are all bullish, with the FTSE up 2.25% (still flying the election is out of the way). As of 7:30 am, U.S. futures are pointing to a gap higher of between a quarter percent (DIA) and half a percent (SPY and QQQ).
Impeachment will make news this week. However, with Senate Republicans not even pretending they’ll conduct a real trial, that story is unlikely to have any market impact. So, with the Fed on hold and Phase One of a Trade deal seemingly done, a Santa Claus rally into year-end sure seems like a high probability. We should keep in mind that we’re always just one angry tweet, comment, or unexpected news item from a pullback. So, just remember we are at all-time highs and will likely be extended again soon. Trade the chart we’re given, but don’t expect the trend to last forever. We all know market move in zigs and zags. Continue to take profits, move stops, plan your trades, and trade your plans.
Ed
Swing Trade Ideas for your watchlist and consideration: BLUE, GGAL, AMRN, FTCH, AAPL, CHGG, PG, WU, FSK, KO, LOW, BURL, MLNX. Trade smart, take profits along the way and trade your plan. Also, do not forget to check for upcoming earnings. Stocks we mention and talk about are not recommendations to buy or sell.
🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.
🎯 DickCarp: the scanner paid for the year with HES-thank you
🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.
🎯 Bob S: LTA is incredible…. I use it … would not trade without it
🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade: PYPL, TGT, and ZS. Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.
🎯 Friday 6/21/19 (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.
Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.
DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it. Past performance does not guarantee future results. Terms of Service
What a difference a day makes! After learning the US and China have reached a tentative that removes the looming tariff overhang, the bulls easily pushed the DIA, SPY, and QQQ to new record highs. Futures this morning seem quite confident that the President will accept the Phase 1 agreement removing the weekend stumbling block and clearing a path for a possible Santa Clause into the new year. The huge victory for Boris Johnson in the UK sets the stage for Brexit to occur, and the Sterling is soaring as a result. After a long day debate, the House committee is likely to vote on impeachment today but with the trade news it will likely be a non-event for the market.
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Overnight, Asian markets rallied as much as 2%, with the
pending weight of new tariffs now lifted.
European markets are also in rally mode this morning in reaction to the
trade deal and the history-making UK election results. US Futures point to a substantial gap up open
that well set new records for the second time this week. Remember, gaps are gifts so consider taking
some profits as we head into the weekend.
On the Calendar
On the Friday Earnings Calendar, we have only 11 companies
reporting results and there are no particularly notable events today.
Action Plan
Sing the 12 Days of Christmas
What a difference a day makes. Yesterday we learned the US and China reached
a tentative agreement. We are still waiting
on the President to accept the deal but the market seems quite positive he will
do just that. Although there are very
few details about what’s in this Phase 1 agreement, the bulls confidently set
new record highs in the DIA, SPY, and QQQ after hearing the news. The UK Prime Minister Boris Johnson accomplished
a remarkable win that will secure Britain’s exit from the Euro block. After 14 hours of debate, the impeachment
committee postponed their vote until sometime today to send the articles of
impeachment to the full house for their decision.
The market’s around the world are responding positively to the
trade news helping the US Futures point to yet another record-making day at the
open. Assuming the President will accept
the deal sometime today, we have the makings for a very bullish day to close
the week. Removing the massive tariff
overhang from the weekend will make it much easier for the bulls to remain in
control of this trend. It may also open the door for a nice Santa
Clause rally as we head into the New Year.
Markets ran higher at the open Thursday on a Presidential tweet touting that a phase one trade deal with China is close. During the day additional leaks claimed it was a “done deal.” As we should have expected with this story, at the end of the day it was confirmed that a phase-one deal was “done”…except that President Trump had not signed off on it yet.
The net result was that the bulls ran strongly most of the day. The SPY ended up 0.87%, the DIA up 0.80%, and the QQQ up 0.75% leading to new all-time high closes in all three major indices. This caused the VXX closed down sharply -5.92%. Meanwhile, T2122 is inching back toward the over-bought area, now at 78.98.
After hours the President did finally sign-off on the phase-one partial deal, but that while terms have been settled the legal text of the agreement has not yet been written. (Soooo…it’s done, but not done, close but not quite.) At any rate, it is being reported that new tariffs are off the table, existing tariffs will be rolled back about 50%. In exchange, the Chinese have agreed to buy $40 billion in US goods. (This includes the $24 billion/year in Ag products they had been purchasing before this trade war plus an additional $16 billion in other goods. For reference, the US imports $540 billion/year in goods from China and prior to the trade war China imported $120 billion/year from the US. So, it’s not exactly a major change. Nonetheless, it will be claimed as a victory and markets are likely to continue their run on this news.
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In other news, Congress agreed to a “deal in principle” for a $1.37 Trillion spending bill to avoid a Government shutdown. Federal funding will run out on Dec. 20 if a deal is not passed and signed. This basically adds another $100 billion to the budget, but significantly, it does not back-fill the money President Trump unilaterally took from the military to pay for beginning construction on his border wall. So, there is no word yet on if the President will sign the bill agreed on by the Senate and Congress.
In the UK, Boris Johnson has won a very comfortable majority in Parliament. (The largest majority since 1987.) This means Johnson will remain PM, no longer need a coalition and that his Brexit plan has the votes needed for approval. Presumably, this means the UK will leave the EU in January. The British Pound surged on this outcome.
Favorite Charting Software
The major economic news Friday includes Nov. Core Retail Sales (8:30 am) and Business Inventories (10 am). There are no major earnings reports on the day.
Overnight, Asian markets were all in the green. In Europe, markets are also all bullish. As of 6:30 am, U.S. futures are pointing to a half percent gap higher.
Impeachment remains the main domestic story, but (purely coincidentally I’m sure) the partial phase-on trade deal agreement will overshadow this for markets. With that overhang out of the way and no economic news Friday, the bulls will likely keep running to the upside. The temptation will be to get caught up in chasing this surge. Just remember we are at all-time highs and will be extended again soon. So, trade the chart we are presented, but don’t expect it to last forever. We all know market move in zig-zags. Continue to take profits, move stops, plan your trades, and trade your plans.
Ed
No Swing Trade Ideas for Friday. Trade smart, take profits along the way and trade your plan. Also, do not forget to check for upcoming earnings. Stocks we mention and talk about are not recommendations to buy or sell.
🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.
🎯 DickCarp: the scanner paid for the year with HES-thank you
🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.
🎯 Bob S: LTA is incredible…. I use it … would not trade without it
🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade: PYPL, TGT, and ZS. Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.
🎯 Friday 6/21/19 (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.
Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.
DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it. Past performance does not guarantee future results. Terms of Service
Impeachment, Tariffs, and Brexit, Oh My! While the House impeachment committee prepares
a Thursday vote charging the president with high crimes and misdemeanors,
citizens of Britain go to the polls as the Prime Minister fights for a majority. What a tangled web of uncertainty the market
faces as we wait. After learning that
the FOMC will hold the line on interest rates and the positive economic comments
by the Chairman, the DIA, SPY and QQQ closed with modest gains. One wonders if they can continue to remain so
brave if we head into the weekend still waiting on a presidential tariff
decision.
Overnight Asian markets closed mixed but mostly higher as they closely monitor trade and tariff developments. European markets are moderately green across the board as the watch developments in the UK election and wait on an ECB rate decision with Christine Lagarde at the helm. With an impeachment vote pending, US Futures are pointing to modest gains at the open as the President prepares to meet with trade advisers. Keep a close eye on price action for clues as we wait for possible market-moving news.
On the Calendar
On the Thursday Earnings Calendar, we have 22 companies
reporting quarterly results. Notable
reports include COST, ADBE, AVGO, CIEN, ORCL.
Action Plan
13 day to Christmas!
After cutting the interest rates three times in 2019, the
FOMC decided to stand pat and have encouraging words about the overall
economy. As expected, there was very little
price movement after the release, but the bulls finally manged a positive Dow
close by the bell. The house impeachment
committee debated late into the evening with a vote likely to occur sometime
today, sending the articles to the full house vote. Across the pond, British citizens are voting today
in an attempt by the Prime Minister to win a party majority that will pass his
Brexit deal. Should his party win gain,
the majority needed the Brexit deal could occur rather quickly and may affect
the overall market. Should they lose,
the opposing party promises a new vote to determine if the country wants to
proceed with Brexit at all.
As we wait for the decision on the Dec 15th
tariffs, the bulls have done a very good job of defending the overall index
trends. However, as the weekend approaches,
one wonders how long they will remain this brave in the face of so much uncertainty. Futures are modestly bullish this morning ahead
of the Jobless Claims, and PPI reports. After
the bell, we will hear from ADBE, AVGO, COST, & ORCL earnings that could prove
to be market-moving. A confusing and
worrisome market to be sure so plan your risk carefully.
Markets drifted again Wednesday ending flat in the SPY and DIA, while the QQQ gained half a percent. This happened on below-average volume. At the same time, the VXX gained fell 2.33% and T2122 remains in the mid-range at 66.83. So, while still very near all-time highs, markets are drifting this week as we wait on the next news on a potential phase-one China trade deal.
In the news, as expected, the Fed left rates unchanged and again said it would take a major shock before they raised rates. However, there was no more news on the China Trade deal. Even so, more talking heads and CEOs say they expect a phase one deal prior to prevent any new tariffs on China. The FAA also said that 737 Max recertification will not be completed until sometime in 2020. (The latter hit BA hard at the open, but it recovered all day.
$50.00 discount with code: Privilege
The major economic news Thursday includes Nov. Core PPI and Weekly Jobless Claims (both at 8:30 am). The only earnings of note are ADBE, AVGO, COST, and ORCL, all after the close. However, just as earlier in the week, all of this is likely to be overshadowed as we inch closer to the Dec. 15 “New Tariffs on China” deadline.
Overnight, Asian markets were all in the green, but wide-ranging (NIKKEI up 0.14%, but Hong Kong +1.31%). In Europe, markets are mixed, but most are green. As of 7:30 am, U.S. futures are just on the green side of flat.
Favorite Charting Software
Impeachment (and related distractions) remain the main domestic story. In Europe, they are waiting on the outcome of today’s UK election. And the whole world continues waiting on the next twist in the China Trade War. So, markets may drift even more today. However, no matter what chart we get, that’s the market we have to trade. Continue to take profits, move stops, plan your trades, and trade your plans.
Ed
Swing Trade Ideas for your watchlist and consideration. GOLD, LDOS, AMKR, LRCX, GPK, DHI, RMD, LOGM, LYFT, XLNX, WUBA. Trade smart, take profits along the way and trade your plan. Also, do not forget to check for upcoming earnings. Stocks we mention and talk about are not recommendations to buy or sell.
🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.
🎯 DickCarp: the scanner paid for the year with HES-thank you
🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.
🎯 Bob S: LTA is incredible…. I use it … would not trade without it
🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade: PYPL, TGT, and ZS. Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.
🎯 Friday 6/21/19 (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.
Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.
DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it. Past performance does not guarantee future results. Terms of Service
Do you have an Edge? That is the question I continue to ask myself as we wait on trade talks and a tariff decision. We know the market continues to be very sensitive on this subject, and we experienced yesterday the market could move substantially on any news report or rumor on the subject. Every trader should consider carefully consider their risk as this market-moving decision approaches. If that would not enough, we also have an FOMC rate decision at 2:00 PM Eastern to consider today. Although the expectation is the committee will hold rates steady, a change in the statement or the Chairman’s press conference can create some price volatility.
Overnight Asian markets closed mixed but mostly higher as they
closely monitor tariff news and the possibility of a Phase 1 trade deal. European indexes trade mixed but mostly lower
this morning ahead of the FOMC rate decision.
US Futures ahead of the CPI report indicate a relatively flat and mixed
open with the QQQ looking the most bullish, but that could change significantly
by the open. Don’t be surprised if
indexes become light and choppy as we wait on the FOMC decision that may well
prove an overall non-event.
On the Calendar
On the hump day Earnings Calendar, we have 37 companies fessing
up their quarterly results. Notable
earnings include AEO, LULU, TLRD, PLCE, UNFI, & VRA.
Action Plan
Only 14 days to Christmas!
Before the market opens today, we will get the latest
reading on the CPI number. Consensus estimates
expect a slight decline but could move the market and affect the open if the
reading happens to surprise. At 2:00 PM,
FOMC will release the results of the 2-day interest rate meeting. Their decision is likely to be a non-event
because the expectation is they will hold rates steady and unlikely to change forward
projections. Of course, if during the
Chairman’s press conference, if we learn something more about their forward-thinking,
we could experience some price volatility.
As the House prepares to impeach the President, the main
market focus at the moment is the US/China trade deal and, more importantly,
what it may mean for the Sunday scheduled tariff increase. We saw the market sensitivity
to this yesterday as the pre-market futures quickly recovered due to a Journal
report. Then, when the government couldn’t
confirm the tariff delay as reported, the market quickly reversed to the negative
whipsawing prices. With that in mind,
carefully consider your risk as we wait for the Presidents decision.
Tuesday was another blah day with slightly less than normal volume. It seemed like markets were waiting on another shoe to drop. The bulls never could get going, but the bears had no energy either. As a result, the SPY, DIA, and QQQ all ended up with indecisive Doji-like candles down about 0.1%. The VXX had no juice either, ending up just 0.17%.
In trade-related news, Congress announced its agreement to approve a revised version of the USMCA (successor to NAFTA). However, there was no new information on the China Trade deal, which the market took as something to fear this close to the next deadline.
The major economic news Wednesday includes Nov. Core CPI (8:30 am), Crude Oil Inventories (10 am), and the Fed Statement (2 pm) and Press Conference (2:30 pm). However, with the Fed flat out stating it will be on hold for the rest of the year, no significant reaction is expected. The only earnings of note are LULU. However, just as earlier in the week, all of this is likely to be overshadowed as we inch closer to the Dec. 15 “New Tariffs on China” deadline.
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Overnight, Asian markets were mixed, but Hong Kong was well in the green. In Europe, all the major markets are mixed. As of 7:30 am, U.S. futures are pointing to an open about flat on the SPY and DIA with a quarter-percent gap up in the QQQ. It is also worth noting that the Saudi Aramco IPO did very well, pricing at the top end of its expected range and rising 10% on its first day of trading (on the Saudi market). This makes Saudi Aramco the largest company in the world by a wide margin (over MSFT and AAPL).
Favorite Charting Software
With impeachment remaining the main domestic story, Europe awaiting the outcome of the ECB meeting and the UK election, and the whole world waiting on the trade deal President Trump told us was done 10 weeks ago, markets may well drift even more. Regardless, we have to trade the chart we get. Continue to take profits, move stops, plan your trades, and trade your plans.
Ed
Swing Trade Ideas for your watchlist and consideration. BLUE, NWL, KEYS, DCP, THO, IPHI, PAA, JBHT, EW, EXEL. Trade smart, take profits along the way and trade your plan. Also, do not forget to check for upcoming earnings. Stocks we mention and talk about are not recommendations to buy or sell.
🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.
🎯 DickCarp: the scanner paid for the year with HES-thank you
🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.
🎯 Bob S: LTA is incredible…. I use it … would not trade without it
🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade: PYPL, TGT, and ZS. Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.
🎯 Friday 6/21/19 (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.
Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.
DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it. Past performance does not guarantee future results. Terms of Service
Articles of impeachment, pending tariffs, or phase one deal,
and a pending FOMC decision is a trifecta of uncertainty and possibly the
perfect storm for price volatility. This
morning the bears are reacting to the uncertainty but we could be just one news
report or tweet away that from triggering major sentiment shift. What comes next is anyone’s guess and the
question we much answer is how much risk are we willing to take while we wait
for the next shoe to drop. If it happens
during the day, traders can react, but if it occurs overnight, traders will
have have to deal with the aftermath. Consider
your risk very carefully!
Asian markets closed mixed but mostly negative as China
consumer inflation jumps in November and pork price surge 110 percent. Across the pond, Eurozone indexes are red
across the board as they closely monitor the approaching tariff deadline. US Futures indicate the bears are once again
making a push lower this morning with the Dow pointing to 100 point gap down ahead
of earnings and economic reports.
On the Calendar
On the Earnings Calendar, we have 26 companies stepping up
to report quarterly results. Among the
notable reports today are GME, AZO, PLAY, & OLLI.
Action Plan
Santa will be here in 15 day!
It would appear that Congress has made some progress may finally complete the North American trade deal that has been languishing for many months. At the same time, the House has prepared articles impeachment that may be released as early as today and voted on by the end of the week. While all this political drama has been unfolding, the market has been holding its breath, waiting for clarification of the Phase 1 trade deal with China or if there will be a new tariff increase this Sunday. Monday’s sideways chop displayed the uncertainty of the market. According to the reports, China has agreed increase its soybean purchases and reported pork price spiked 110% in November.
As we wait for some clarification, the bears have come out to
play with futures markets pointing to lower open this morning. A little fear seemed to creep into the
thinking of the market yesterday with the rising 16% as the indexes price
chopped sideways. Today begins the 2-day
FOMC meeting with an announcement scheduled for 2:00 PM Eastern Wednesday. Although they have projected a wait a see approach
on further rate cuts, waiting for their actual decision always adds a twinge of
uncertainty for the market to work through.
