Facebook Data Woes Pull Down Tech Sector

Hello traders everywhere. Facebook's decline of over 7% today has put pressure on the entire stock market, especially the tech sector. Facebook fell after reports surfaced that the political analytics firm Cambridge Analytica was able to collect data on 50 million people's profiles without their consent. It begs the question, should the likes of Facebook, Twitter, and Snap be under some form of federal regulation?

This drop by Facebook is the most significant drop in its stock price in 16 months. The fall is more than 10% below its all-time high set on Feb. 1 and it also pushed the price below its 50-day and 200-day moving averages, two key technical levels.


Key Events On Tap This Week:

The Fed decision and Powell's news conference come on Wednesday.

The Bank of England is expected to keep interest rates and its asset-purchase program unchanged on Thursday. Attention will be on language and the odds for a May hike.

Saudi Crown Prince Mohammed bin Salman is expected to meet with President Donald Trump at the White House this week as part of a U.S. visit.

Company earnings scheduled for this week include Tencent, FedEx, Porsche, Hermes, PetroChina, Nike, Enel, and Oracle.

Key Levels To Watch This Week:

Continue reading "Facebook Data Woes Pull Down Tech Sector"

All Eyes On Bitcoin's Death Cross

Hello traders everywhere. Technical traders and the market in general, are closely watching Bitcoin heading into next week. The reason for concern, a looming Death cross. As I noted earlier in the week, Bitcoin's 50-Day moving average has dropped to the closest proximity to its 200-Day moving average in nine months. The last time it crossed below that level was in 2015 where it remained for ten months before breaking out.

The "death cross" pattern occurs when the 50-Day moving average drops below the 200-Day moving average. The idea is that this cross marks the spot where a shorter-term decline is turning into a longer-term downtrend.

Death Cross

Bitcoin has come under growing pressure recently with Google announcing that they will not only ban all ads for cryptocurrencies, including bitcoin and initial coin offerings (ICOs), they will also ban cryptocurrency exchanges and wallets, as it seeks to "tackle emerging threats."

Regulation is also becoming a growing concern for Bitcoin, and the cryptocurrency space as nations around the world are imposing stricter regulations on the use and mining of cryptocurrencies.

Key Levels To Watch Next Week:

S&P 500 (CME:SP500): 2,647.32
Dow (INDEX:DJI): 24,217.76
Gold (NYMEX:GC.G18.E): 1,330.50
Crude Oil (NYMEX:CL.J18.E): 60.11
U.S. Dollar (NYBOT:DX.H18.E): 89.33
Bitcoin (CME:BRTI): 11,662.32

Every Success,
Jeremy Lutz
INO.com and MarketClub.com

Trump Squashes Biggest Tech Deal Ever

Hello traders everywhere. Late Monday, President Trump signed an executive order blocking Broadcom’s $117 billion bid for the chip maker Qualcomm, citing national security concerns. This action indicates that he is willing to take extraordinary measures to remain on course with his administration’s increasingly protectionist stance.

The Broadcom acquisition would have been and was labeled as the most significant tech deal ever and would have made Broadcom the dominant supplier of chips used in smartphones. It would have also brought the company to the forefront of developing technology for the next generation of mobile network technology known as 5G.


The NASDAQ had opened at record highs before news of the block had sunk in, but once it did the NASDAQ soon retreated into negative territory on the day trading as low as .9% on the day.

Shares of Broadcom Limited (AVGO) are trading up on the day around 1% while shares of QUALCOMM Incorporated (QCOM) are trading down about 4% on the day.

Overall the stock market has been waffling the last few days trying to get a grasp on inflation, the looming trade wars and the firing of Rex Tillerson today by President Trump.

Key Levels To Watch This Week:

S&P 500 (CME:SP500): 2,647.32
Dow (INDEX:DJI): 24,217.76
Gold (NYMEX:GC.G18.E): 1,313.80
Crude Oil (NYMEX:CL.J18.E): 62.33
U.S. Dollar (NYBOT:DX.H18.E): 88.86
Bitcoin (CME:BRTI): 8,664.30

Every Success,
Jeremy Lutz
INO.com and MarketClub.com

Nasdaq Hits Record As Dow Surges

Hello traders everywhere. The Nasdaq is trading at record highs today erasing last weeks loss and triggering a new green monthly Trade Triangle. In fact, all three indexes are trading considerably higher today and trying to wipe out their losses from last week.

The reason for the significant gains today, a huge jobs number. Nonfarm payrolls jumped by 313,000 jobs last month, boosted by the largest rise in construction jobs since 2007, the Labor Department said on Friday. The payrolls gain was the biggest since July 2016 and triple the roughly 100,000 jobs the economy needs to create each month to keep up with growth in the working-age population.


The labor market is benefiting from strong domestic demand, an improvement in global growth as well as robust U.S. business sentiment following the Trump administration’s $1.5 trillion income tax cut package that come into effect in January. Continue reading "Nasdaq Hits Record As Dow Surges"

Cohn Resignation Puts Pressure On Stocks

Hello traders everywhere. Gary Cohn's resignation from being President Donald Trump's chief economic advisor has caused the stock market to head considerably lower on the day. His departure creates uncertainty in the markets and fears that the Trump trade war could take place sooner rather than later.

Even on a day when ADP and Moody's Analytics announced that private-sector jobs grew by 235,000 in February, surpassing an estimate of 195,000, Cohn's resignation trumped the good news. The report is used as a preview to the Bureau of Labor Statistics' monthly jobs report, which is scheduled to be released Friday.

Cohn Resignation

Bitcoin has slumped after the U.S. Securities and Exchange Commission reiterated that many online trading platforms for digital assets should register with the agency as exchanges. Continue reading "Cohn Resignation Puts Pressure On Stocks"