Stocks Turn On Bannon's Exit

Hello Traders everywhere. The stock market was trading and trending lower for the day to close at a four-day low when all of the sudden it reversed course. The cause for the reverse, news that White House strategist Steve Bannon was dismissed from his duties by President Donald Trump.

I can't recall such a clear and distinct turnaround caused by news from the White House like today; it sure came out of nowhere.

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Oil prices jumped higher Friday as the stock market strengthened and the U.S. dollar weakened. However, crude oil futures remain on track to close the week down as traders are still worried about the global oil glut.

Key levels to watch next week: Continue reading "Stocks Turn On Bannon's Exit"

Stocks Gain As Global Tension Eases

Hello traders everywhere. Stock markets around the globe are posting gains today as the tensions between the U.S. and North Korea have eased a bit. The S&P 500 and NASDAQ are both posting 1% gains with the DOW trailing closely on their heels.

Concerns over a rise in OPEC crude production has pushed oil down little over 1% to 48.13, its lowest level in slightly over two weeks. Check out Robert Boselego's recent article on OPEC's production numbers and where he sees the price of oil heading.

Gold has retreated from its Friday high of 1298.10 and is currently trading lower for the day coming under pressure from a strengthening dollar.

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The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 12.4, down about 20%. The index posted its largest weekly gain since December 2015 last week as the North Korea situation escalated.

Key levels to watch this week: Continue reading "Stocks Gain As Global Tension Eases"

The Endless Wait Continues

Hello traders everywhere. What are we waiting for you ask, inflation to pick up steam. The Labor Department announced Friday that the Consumer Price Index edged up 0.1% last month, versus expectations of a 0.2% gain. Traders scour the inflation data looking for clues on the Fed's next monetary policy move. It's going to be hard for the Fed to raise rates with weak inflation.

Market expectations for a December rate hike fell after the CPI data was released. Just 38% of investors expected the central bank to rates again at the end of the year, down from about 45%, according to the CME Group's FedWatch tool.

Do you think they are going to raise rates if inflation remains stagnant?

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Key levels to watch this week: Continue reading "The Endless Wait Continues"

Tech Stocks On a Run; ETF's To Buy 'IF' you Think It Will Continue

Matt Thalman - INO.com Contributor - ETFs


The NASDAQ (NASDAQ:COMP) has hit a number of new all-time highs in 2017. This has many analysts and investors wondering if the market and especially technology stocks are getting over-heated.

The Bulls will tell you that we are entering a new time of economic expansion and that technology is leading us forward. They say the higher than normal P/E ratios are due to the massive growth opportunities these companies still have moving forward.

The Bears, which I spoke about a few weeks ago, disagree and believe we are heading toward the next dot.com bubble. They say the 'Bulls' growth expectations are already built into tech stocks so much so that these companies are priced to perfection, which we all know is unlikely to happen.

Personally, I sit in-between both camps because I do believe some technology stocks will fail to meet expectations but others are completely changing how commerce is done, and because of their disruptive businesses, they will succeed. Continue reading "Tech Stocks On a Run; ETF's To Buy 'IF' you Think It Will Continue"

North Korea Brings Volatility To The Stock Market

Hello traders everywhere. The DOW fell almost 150 pts this morning as tensions and worries over North Korea increased. U.S. stocks fell the most in a month, and the VIX reached its highest level since May as American allies warned North Korea against firing missiles toward Guam. Of course, the safe-haven assets advanced, with gold, the yen, and Treasuries all higher.

The NASDAQ is the big loser this morning, losing 1.38% and issuing a new red weekly Trade Triangle, indicating that a move to the sidelines is in order.

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Key levels to watch this week: Continue reading "North Korea Brings Volatility To The Stock Market"