Proposed China Deal Boosts Stocks

Hello traders everywhere. The stock market got a late morning boost when Bloomberg reported that a China deal may be close. China has offered to go on a six-year buying spree ramping up imports from the U.S., that move would reconfigure the relationship between the world's two largest economies, according to officials familiar with the negotiations.

By increasing goods imports from the U.S. by a combined value of more than $1 trillion over that period, China would seek to reduce its trade surplus, which last year stood at $323 billion, to zero by 2024. The officials asked not to be named as the discussions aren't public.

That news has propelled the major indexes to their highest levels of the week and capping off the fourth straight week of gains. The S&P 500, DOW, and NASDAQ will all post weekly gains of +2.9%. However, they still have some work to do to trigger new green monthly Trade Triangles.

China Deal

For the first time in four weeks, the U.S. dollar is posting a gain, currently standing at +.74%. The dollar was boosted by news of the China deal, positive manufacturing data showing the biggest gain in ten months, and comments from New York Federal Reserve President John Williams. Williams called for "patience and good judgment" before raising rates, adding he expects "strong" and "healthy" economic growth for this year. Continue reading "Proposed China Deal Boosts Stocks"

Netflix Leads FAANG Stocks Higher

Hello traders everywhere. After a weak opening to the week, stocks are on the rise, led by Netflix. With Netflix leading tech-related stocks higher the S&P 500 and DOW have triggered the new green weekly Trade Triangles that I discussed last week. All three major indexes are now in a sidelines position with Chart Analysis Scores of +70. However, the S&P 500 and DOW are still trading well below their 50-day moving average. Meanwhile, the NASDAQ is close to breaking through it's 50-day moving average.

Netflix

Netflix Inc. (NFLX) shares jumped over 5% after the company announced it would hike prices to its monthly memberships by 13 to 18%. This will be the company's biggest price hike since it launched its streaming service more than a decade ago. That's led the FAANG stocks (Facebook, Amazon, Apple, Netflix, and Alphabet) higher with all of them rising more than 1% on the day.

After two days of losses, crude oil is on the rise gaining over 1.5% on the day amid production cuts by OPEC and Russia as well as signs of lower U.S. oil stocks. However, most analysts believe that this rally will be short lived after data showed weakening imports and exports in China, raising new worries about a global slowdown. Continue reading "Netflix Leads FAANG Stocks Higher"

Stock Market Stumbles Into The Finish

Hello traders everywhere. The stock market is stumbling into the finish of the week ending a five-day win streak. But overall it will finish up for the week making this the third straight week of positive gains. Reason for the weakness today, China and the government shutdown that doesn't seem to be ending anytime soon.

All three major indexes are ending the week with positive gains. Both the S&P 500 and DOW are posting gains of about +2% for the week, but both indexes are still waiting for the green weekly Trade Triangle to appear signaling a move to the sidelines. The NASDAQ did issue a green weekly Trade Triangle this week and will end the week with an impressive +3% gain.

stock market stumbles

The U.S. Dollar continues to be under pressure dropping -.64% on the week making this the fourth straight week of declines.

Crude oil has had another monster week posting a +7% gain for the second week in a row. However, much like the overall stock market, it is down about 1% on the day. This drop comes after nine straight days of gains and is most likely just some profit taking by traders. Continue reading "Stock Market Stumbles Into The Finish"

Stocks Up For The Fourth Day

Hello traders everywhere. Stocks are on the rise for the fourth straight day which is mostly due to signs of progress in U.S.-China trade talks which has given the market optimism. Officials from the United States and China ended their talks in Beijing that lasted longer than expected and officials said details will be released soon, raising hopes that an all-out trade could be averted.

Hopes of a trade deal between the world's two largest economies, strong U.S. jobs data and Federal Reserve chair Jerome Powell's dovish remarks on interest rates have helped lift the S&P 500 9.7% from the 20-month low it hit around Christmas, but we're still waiting on a green weekly Trade Triangle which would indicate a move to a sidelines position. The NASDAQ just issued a new green weekly Trade Triangle moving to a sidelines position. The DOW is currently about 54 pts away from issuing a green weekly Trade Triangle, will we see that today?

green weekly trade triangle

Crude oil is up for the eighth session issuing a new green weekly Trade Triangle today at $51.78 indicating that a short-term long position is in order. Traders shrugged off bearish data on U.S. stockpiles focusing on OPEC production cuts and U.S.-China trade talks. Saudi Energy Minister Khalid al-Falih on Wednesday reaffirmed that production will fall to 10.2 million barrels per day this month, down from an all-time high 11.1 million bpd in November. Saudi Arabia will export 7.2 million bpd in January and 7.1 million bpd in February, according to Falih. Continue reading "Stocks Up For The Fourth Day"

Market Rallies On Strength Of Jobs Report

Hello traders everywhere. All three major indexes are looking to finish the week on a strong note and post back to back winning weeks for the first time in nine weeks. The reason for the surge after a terrible day on Thursday, jobs.

Nonfarm payrolls jumped by 312,000 jobs last month, the largest gain since February, as employment at construction sites snapped back after being restrained by unseasonably cold temperatures in November.

jobs

There were also broad gains in hiring last month. Data for October and November were revised to show 58,000 more jobs added than previously reported. The economy created 2.6 million jobs last year compared to 2.2 million in 2017.

Average hourly earnings rose 11 cents, or 0.4%, in December after gaining 0.2% in November. That lifted the annual increase in wages to 3.2%, matching October's rise, from 3.1% in November. The average workweek increased to 34.5 hours in December from 34.4 hours in November. Continue reading "Market Rallies On Strength Of Jobs Report"