We had a quite and mixed finish to the end of the trading week. It was a week where we had the FOMC announcement, Kim Jong and POTUS Trump trade barbs through the media and AAPL shedding around 50 Billion since their announcement of the new iPhone. Even with AAPL shedding a huge amount off their market cap, the bulls withstood the heavier selling. So threats of nuclear war and every growing tensions are priced in. The dissatisfaction of a product launch from the biggest and most popular tech company had little effect. The unwinding of the balance sheet and weakened longer term outlook for our economy had very little effect. What will it take for the markets to go down outside of a missile fired directly at us? The fact that the markets remained more stagnant than fearful is almost astounding. I don’t want to come off whiny in a bull market. This is great for Americans and investors alike. I just question why the markets are not selling off on missile launches any more? Why are FOMC announcement days now a yawn fest? The media is obviously hyped about the event. They provide a countdown clock all day on the television. Why are catastrophic events being ignored? Like the ones we’ve had recently… you know the back to back to back to back hurricanes? I’m not asking for the markets to be demolished. I’m just asking for the markets to behave like the markets. That won’t happen anytime soon. And I am okay with that. I know some retail may not be, but the majority definitely is and that is why we will sustain gains for quite some time. Open Position: CTXS XLNX QCOM WDAY RH TRIP Stocks to Watch: TWTR CTXS NTAP JBL HLF WFC JPM MS NFLX WDC DIS SBUX STZ NKE LULU CREE VZ T HOG MON YUM LOW HD LEN TOL FEYE PANW FFIV AKAM
We finally saw some actual weakness in the markets. With some aggressive selling taking place, some buyers started to take profits off the table. While new buyers were also trying to take a very aggressive stance, it was not enough as we closed negative across the board. We may see the weakness leak over into today’s session. With the continuing back and forth between our POTUS and Kim Jong Un, the war of words has to be something the markets are worried about. When words about destruction and retaliation are at the forefront, it can’t be a good thing for the markets. While we may end up near the highs, I think risk off trading will be taking place to finish off the week. Open Position: CTXS ADSK AABA XLNX QCOM WDAY RH Stocks to Watch: TWTR CTXS NTAP JBL HLF WFC JPM MS NFLX WDC DIS SBUX STZ NKE LULU CREE VZ T HOG MON YUM LOW HD LEN TOL FEYE PANW FFIV AKAM
We actually saw a little volatility yesterday. With the FOMC meeting announcement yesterday, traders were taking risk off early. Then risk on trading at the lows took place and we started to rally back into the meeting. The FOMC did weaken their longer term guidance and will also start unwinding the balance sheet by 10B starting in October. That doesn’t mean they won’t be reinvesting the current money they have in the markets. More that they will lighten the load a bit. They also have some insight to another rate hike, but also mentioned that if inflation stays stagnant they wouldn’t hesitate to adjust their monetary policy. Basically saying that QE is always available and not to worry investors. While we did swing lower on the initial announcement and early on into the presser, we bounced and shorts covered their positions causing a pretty swift rally. Another day of new all time highs and no concern from the bulls. This is the new normal and it seems you get rewarded for not being patient instead of the other way around. I would expect the markets to continue to rally ladies and gentlemen. All is good with the markets. Open Position: CTXS ADSK AABA XLNX QCOM WDAY RH Stocks to Watch: TWTR CTXS NTAP JBL HLF WFC JPM MS NFLX WDC DIS SBUX STZ NKE LULU CREE VZ T HOG MON YUM LOW HD LEN TOL FEYE PANW FFIV AKAM
As predicted, the market action was slow and quiet leading into the FOMC meeting announcement. There was a small moment of volatility as The POTUS spoke at the UN assembly. He referred to Kim Jong as the “Rocket Man” and threatened to “totally destroy” NK. Basically laying down the law and giving NK another warning. While the UN sanctions have been severe, it clearly hasn’t been a deterrent as they continue to test missile launches and move forward with their nuclear program. Instead of harping on that news today, expect all eyes to be on the FOMC and subsequent press conference afterward this afternoon at 1pm CST. We should see some volatility today on the announcement. Well more so than the more recent announcements when the markets barely reacted to the news. Any surprise will ramp up volume and anything expected will cause buyers to flood the markets. Watch close and protect your short term positions traders. Open Position: CTXS ADSK BABA AABA XLNX QCOM WDAY RH Stocks to Watch: TWTR CTXS NTAP JBL HLF WFC JPM MS NFLX WDC DIS SBUX STZ NKE LULU CREE VZ T HOG MON YUM LOW HD LEN TOL FEYE PANW FFIV AKAM
The markets once again jumped into record territory but we did see some risk off trading take place. It may have to do with the FOMC meeting starting yesterday with the announcement and presser taking place Wednesday afternoon. It also wasn’t surprising with the markets being at those levels that we did see some profit taking. That fits more in line with what we have seen recently versus what we saw last Nov-Jan when it was a risk on trade. Expect the market action to be flat leading into the announcement tomorrow. While recent FOMC announcements have led to flat trading, I don’t think that will be the case this around. Any surprise will cause volatility and volatility at these levels usually means a swift pullback. Be prepared and protect your positions. Open Position: CTXS CCI ADSK BABA AABA XLNX QCOM Stocks to Watch: TWTR CTXS NTAP JBL HLF WFC JPM MS NFLX WDC DIS SBUX STZ NKE LULU CREE VZ T HOG MON YUM LOW HD LEN TOL FEYE PANW FFIV AKAM
We finished Friday with a mixed bag of results. We did see some late risk off trading with concerns of NK and how they will celebrate their anniversary. It’s going to be pretty simple for how we will open on Monday. If a missile gets fired over the weekend, we will open lower for the session. If not, expect the markets to rally back. Monday will also be 9/11 it usually is a somber day for the markets. I think we will see a strong response from buyers if it’s a quiet weekend. It’s time we try and rally back in the markets. Not ready to be a full on bull or bear yet, opportunities abound in both directions short term. Open Position: CTXS WDAY STX ADSK AAP Stocks to Watch: TWTR CTXS NTAP JBL HLF WFC JPM MS NFLX WDC DIS SBUX STZ NKE LULU CREE VZ T HOG MON YUM LOW HD LEN TOL FEYE PANW FFIV AKAM
It was a quiet day in the markets as the trading action flipped flopped early on in the day. Things quieted down until a small late day push to the upside came in. Tech tried to lead the way higher for the COMP, but the DJI was weighed down by DIS and CMCSA getting hit hard with heavy selling. Sellers continue to make their presence felt and are determined to drive the markets lower it seems. I am looking for the selling to extend into the next few weeks, and possibly until the end of the year. We have the FOMC looking to wind down their balance sheet soon, but the biggest factor right now is the fears of NK trying to test the POTUS threshold of patience. POTUS Trump doesn’t seem like a man with much patience and the markets are buying this fear. The big money players are buying up gold and VIX products at the moment. It maybe a hedge on long positions in their portfolio, but something that shouldn’t be ignored. It’s a great hedge to have especially if you’re long momentum stocks. The Chinese names are looking stronger than other tech names, but clearly some tech names are going to move higher regardless of the markets(VMW, CRM etc). Look for more selling to take place and watch your portfolio closely. We may have another middle launch Saturday and it could be the kicker that sets things in motion. Open Position: CTXS WDAY STX Stocks to Watch: TWTR CTXS NTAP JBL HLF WFC JPM MS NFLX WDC DIS SBUX STZ NKE LULU CREE VZ T HOG MON YUM LOW HD LEN TOL FEYE PANW FFIV AKAM
After a significant drop in the markets on fears of North Korea and the #Dreamers debacle, the markets struggled to rebound back. While some major techn names did see some buying, fear is starting to get prevalent throughout the markets. We’re starting to see hedging products get som buying volume and short interest increasing. Coupled with risk off trading we have seen lately, that leads to fast and aggressive selloffs and weak rallies to follow. I suspect we could see the markets look to slowly unravel leading into the end of the year. I’m getting less bullish and more conservative in my approach to the markets, and that also means you should also. While I will be aggressive when the opportunity arises, it doesn’t mean you have to buy every dip that has happened. Hedging will be better than loading up one sided in either direction. The fear is real and is only catching a bid. Stocks to Watch: INTC AAPL GOOG IBM AMZN BIDU TSLA YELP LNKD FB TWTR CTXS CSCO NTAP JBL HLF BAC PRU WFC GS JPM MS NFLX WDC DIS CROX SBUX STZ NKE UA LULU CHKP JNPR CREE VZ T HOG MON FSLR YUM MCD LOW HD LEN TOL FEYE PANW CYBR FFIV AKAM
It’s all about Irma and DACA today, though there are also the persistent worries about North Korea and even headlines about a hurricane que se llama José.
Leading Fed dove Lael Brainard’s coos about slowing down on rate hikes are still echoing as well, after helping to send the financial sector’s stocks XLF, -2.14% to their lowest close in nearly three months.
It’s clear what you get if you combine the Fed’s concerns over inflation with the economic damage caused by Hurricane Harvey, then add into the mix the prospect of more damage from Hurricane Irma.
U.S. stocks closed lower on Tuesday, as investors focused on heightened geopolitical tensions after North Korea said it had successfully tested its biggest-ever nuclear bomb. The S&P 500 index SPX, -0.76% snapped a six-day winning run, closing 0.8% lower, while the Dow average DJIA, -1.07% finished down 1.1% and the Nasdaq Composite Index COMP, -0.93% dropped 0.9%.
North Korea is back in the news, which caused the markets to drop around the world during the US holiday – Labor Day. On Sunday, North Korea conducted its most powerful nuclear bomb test to date; far more powerful than those dropped during WWII.
This news, in conjunction with the I.C.B.M that North Korea fired over Japan, has the entire world upset. The French Ambassador to the UN has called for new sanctions, “It is no longer a regional threat, it is a global threat. It is no longer a virtual threat, it is an imminent threat. It is no longer a serious threat, it is an existential threat.”
But one wonders: Will the world use the lower open on Tuesday, when US traders are back, to buy the dip again?”
Open Position: PRU, TROW, GRUB. Stocks to Watch: TWTR CTXS NTAP JBL HLF WFC JPM MS NFLX WDC DIS SBUX STZ NKE LULU CREE VZ T HOG MON YUM LOW HD LEN TOL FEYE PANW FFIV AKAM