Stocks Lose Early Gains As Tech Declines

Hello traders everywhere. What looked to be a promising humpday this morning quickly turned negative as the DOW reversed course. It had been trading over 200 pts higher in early trading but has since fallen over 330 pts trading below 25,000 and losing over 1.3% on the day. The S&P 500 and NASDAQ have followed suit with both indexes losing over 1.2%. It sure looks like volatility is here to stay.

The turn lower coincided with Apple breaking below its 200-day MA trading losing over 2.7% on the day and currently trading at the session low of $186.70 and trading 20% below its 52-week high, entering a bear market. The decline comes after Guggenheim downgraded the stock. This downgrade comes as UBS cut its 12-month price target on the stock and follows a target reduction at Goldman Sachs. Investors have been worried the company's iPhone sales will slow down soon.

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The only bright spot in the market is crude oil, which is looking to stop its twelve-day slide trading higher on the day. Oil is up over 1% trading at $56 a barrel, off the session low of $55.13. OPEC and Russia signaled Sunday they could decide at their December 6th meeting to hold back output by around 1 million barrels a day. This announcement came amid signs the market will be oversupplied in 2019.

The International Energy Agency warned in its report Wednesday that global oil supply was on pace to significantly outstrip demand, as Russia, Saudi Arabia, and the U.S. are pumping out crude at record levels.

President Donald Trump sent another warning to producer cartel OPEC (Organization of Petroleum Exporting Countries) earlier this week, saying he hoped the group would not cut output in a move to buoy prices. The fall in crude has also sparked worries of a global economic slowdown.

Key Levels To Watch This Week:

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Crude Oil Drags Down The Stock Market

Hello traders everywhere. Overall the stock market was looking to finish out a strong week on a high note, but it was not be. Crude oil had other ideas and decided to spoil the party by doing something that it hasn't done since 1984, that's right, I said 1984. For the first time since 1984 oil will post ten straight losing sessions while suffering a drop of over 20% from the recent high and trading below $60 for the first time since March of this year.

Oil's move lower put a bit of a damper on the week for stocks, but overall the big three indexes will still spot weekly gains with the DOW leading the way with a gain of about +2.5% as I write. The S&P 500 checks in with a weekly gain of +1.6% and NASDAQ will still post an increase of +.30% as we head into the close.

Crude Oil

We also woke up to a surprise from gold, a new red weekly Triangle indicating that the intermediate-term trend has resumed its downward move changing the Chart Analysis Score to -100 and pushing gold down with a weekly loss -1.9% trading close to $1,200.00. On the flip slide, the U.S. dollar is still chugging along posting a weekly gain of +.43%. Meanwhile, Bitcoin continues to go nowhere and will post a weak increase of +.10% on for the week.

Key Levels To Watch Next Week:

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Stocks Rise After Midterm Elections

Hello traders everywhere. The midterm elections are over, and the stock market is on the move higher. Are we going to get a long-term post-election rally or is this just a short-term bump? The S&P 500 has jumped above its 200-day MA for the first time in eleven days, but we're still waiting on a new green weekly Trade Triangle to exit a short position in the S&P 500.

The DOW broke above its 50-day MA and issued a new green weekly Trade Triangle at 25,817.68 pushing the Chart Analysis Score to +75 indicating that a long position may be in order for the DOW. We'll have to see if there's carry through at the end of the week or if this is just a short-term election euphoria bump.

The NASDAQ is trading just below its 200-day MA standing at 7,519.45 with a Chart Analysis Score of -70. Even if The NASDAQ trades above the 200-day in the coming days it still has some work to do to enter a sidelines position.

Midterm Elections

On the opposite end of the spectrum, the U.S. dollar is not buying into the post-election hype and traded as low as 95.48 before backing off the session lows. But it is still down on the day and is down .60% on the week. Continue reading "Stocks Rise After Midterm Elections"

Tech Stocks Continues To Pull NASDAQ Lower

Hello traders everywhere. The NASDAQ continues to be pummeled by tech stocks, falling over 1% after posting a positive week last week. The reason for the drop? Big tech, Apple is grabbing the headlines with its shares falling over 3% to $198.17, bringing their monthly losses to 8.1% and five straight weeks of declines. That's the first time Apple's traded below $200 since July of 2018.

Other tech stocks retreated as well, including Amazon.com Inc. down 3.8%, Alphabet Inc. losing 3.2% and Nvidia Corp. falling 3.9%. Not shockingly, all of the FAANG are lower to start the week.

Tech Stocks

Key Events On Tap This Week:

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S&P 500 and NASDAQ Still Below 200-Day MA

Hello traders everywhere. All three indexes are looking to post weekly gains on a nice little rally that happened this week. They were all looking to close above their respective 200-day MA's, but it looks like the S&P 500 and NASDAQ will fall just short, while the DOW is trading above it once again. Could the 200-day MA be the line of resistance for the two indexes? The last time that the indexes traded below the 200-day was back in December of 2015 and that trend lasted until March of 2016. We could be in for a rough close to the year if history holds true.

As we stand in early afternoon trading on Friday the S&P 500 is looking at posting a weekly gain of +2.3%; the DOW stands at +2.3% and the NASDAQ checks in with an increase of +2.7% even as Apple Inc. (APPL) missed earnings and is putting pressure on the tech sector losing roughly 6% on the day.

s&p 500

The U.S. Dollar and Gold continue to track each other consistently and are both relatively unchanged on the week. On the opposite side of trading, crude oil has dipped to its lowest levels in six months issuing a new red monthly Trade Triangle indicating that long-term trend has turned negative. Oil is posting a -6.6% loss on the week making this four straight weeks of declines. The reason for the drop is an abundance of oil in the world market which is relieving tensions over the coming Iranian sanctions by the U.S. Continue reading "S&P 500 and NASDAQ Still Below 200-Day MA"