DOW On Track For 5th Straight Losing Week

Hello traders everywhere. As we head into afternoon trading on the verge of the holiday weekend there isn't much to rejoice about in the stock market. The DOW is on track to post it's fifth straight weekly loss standing at roughly -.80% on the week. Not to be outdone the S&P 500 and NASDAQ will post their third straight week of losses losing -1.7% and -2.1% respectively.

The mounting losses are all due to the ongoing trade war/negotiations with China. Stocks are in the green after President Trump said that the ongoing trade war could be over quickly, he told reporters on Thursday afternoon he expected the U.S.-China trade war to end swiftly. He also noted a trade deal with China could lift tough restrictions on the Chinese telecom giant Huawei.

5th Straight Losing Week

Crude oil prices are down more than -7% this week as trade worries spilled over to other markets. The increased tension in the U.S.-China trade war, which has investors increasingly worried about the state of the global economy and, by extension, the outlook for global oil demand growth for the rest of the year. Oil prices were battered by the clouded outlook on the global economy and oil demand, on top of Wednesday's bearish EIA inventory report, which showed a crude oil inventory build of 4.7 million barrels in the week to May 17. Continue reading "DOW On Track For 5th Straight Losing Week"

Semiconductor Sector Drags Market Lower

Hello traders everywhere. Semiconductor stocks fell after the ruling that Qualcomm used its dominant position to exact excessive licensing fees, a decision that could shake up the broader smartphone industry. Qualcomm (QCOM) fell -12%, while other chip stocks also dropped which in-turn has pulled the overall market as we head into afternoon trading.

Today's declines followed a Tuesday rebound for chip stocks after the White House granted temporary exemptions to an export blacklist against Huawei Technologies, potentially easing U.S.-China tensions as the two sides seek to get trade talks back on track. Some analysts expect trade-related swings to continue until investors get more clarity on escalating tariff threats by both sides.

Semiconductor

On the trade war front, Treasury Secretary Steven Mnuchin told CNBC's Ylan Mui that a trip to Beijing to retake trade negotiations has not been scheduled yet. This lowered hope of a speedy resolution to the U.S.- China trade war.

President Donald Trump followed through with his threat to increase tariffs on $200 billion in Chinese goods from 10% to 25% earlier this month. China immediately responded by upping the tariffs on $60 billion of U.S. goods to as high as 25%.

Key Levels To Watch This Week:

Continue reading "Semiconductor Sector Drags Market Lower"

Bitcoin Suffers Its Biggest Loss Of The Year

Hello traders everywhere. Shortly after Bitcoin broke thru the $8,000 level it suffered it's biggest loss of the year trading as low as $6,178 on the day. Bitcoin has recovered more than 50% since the low hit earlier today. However, it is still down around -5% on the day at $7,071. Much like the recent massive move higher there doesn't seem to be a reason for the sell-off other than profit taking, so I'll just chalk it up to that. Look for the 30-day MA to provide support sitting right above the $6,000 level at $6,009.52.

Bitcoin

As for stocks, the market is ending the volatile week with a thud siting relatively unchanged as we enter afternoon trading. The DOW traded 10 points higher, erasing a 200-point drop, while the S&P 500 and NASDAQ traded below the flatline but also were off earlier lows.

Key Levels To Watch Next Week:

Continue reading "Bitcoin Suffers Its Biggest Loss Of The Year"

Auto Tariff Delay Lifts Market

Hello traders everywhere. The stock market opened in negative territory this morning with the DOW falling as much as 190 points in early trading before turning around to head into positive territory on news that President Trump is expected to delay a decision on tariffs on imported cars and parts by up to six months, according to multiple sources.

The early morning drop came after the release of weaker-than-expected economic data stoked fears that the U.S. - China trade war is dragging down global economic growth. U.S. retail sales fell 0.2% in April, the Commerce Department said Wednesday.

tariffs

Overnight, data released in China showed industrial production rose by 5.4% in April on a year-over-year basis, notching the slowest pace of growth since May 2003. Economists polled by Refinitiv expected an expansion of 6.5%. Chinese retail sales also disappointed economists. Continue reading "Auto Tariff Delay Lifts Market"

Worst Weekly Loss Of 2019 For Stocks

Hello traders everywhere. The Dow was down over 300 points or -1.19%, meanwhile the S&P 500 and Nasdaq are posting daily losses over -1%. Friday's decline capped off a deep sell-off this week that will be the worst weekly loss for the stock market of 2019 with the S&P 500, DOW and NASDAQ losing -3.5%, -3.5% and -4.4% respectively.

Worst Weekly Loss

Stocks declined Friday as President Donald Trump said "there's no need to rush on a trade agreement with China" and "tariffs will make the United States stronger". Continue reading "Worst Weekly Loss Of 2019 For Stocks"