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Morning Market Report for Friday January 12th, 2018

January 12, 2018

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The Morning Market Report is part of your 7 Step Process to Successful Trading by:

  • helping you start at the top of the markets,
  • choosing a trading strategy, and
  • finding and analyzing potential trades.

This report focuses on short-term swings in the market (especially overnight futures movements) that can help you best begin you trading morning. In this daily report, you’ll receive:

  • a summary of major market news,
  • the list of that day’s economic calendar,
  • information regarding the major markets indexes,
  • industry sector performance,
  • major commodities,
  • world currencies. and
  • links to useful sites and/or stories.

So don’t start trading uninformed; add the Morning Market Report to your daily routine.


Calendar


Economic News

  • U.S. Annual Inflation Matches Consensus in December, Core CPI Beats – Consumer price inflation (CPI), on an annualized basis, rose as expected in December, although the core data unexpectedly strengthened, reinforcing the Federal Reserve’s plans to move ahead with gradual rate hikes, official data showed on Friday. Read More… 
  • JPMorgan Chase & Co (JPM) profit beats on higher interest rates –  the biggest U.S. bank by assets, reported a higher-than-expected quarterly profit on Friday as gains in net interest income offset a slowdown in trading revenue. The bank recorded a $2.4 billion charge to cover a new one-time repatriation tax on income it has kept abroad and to adjust the value of its deferred tax assets and liabilities.
  • Global stocks recover – World stocks scaled fresh peaks on Friday while the euro hit a three-year high and Bund yields rose as progress on forming a German government gave fresh impetus to a bond market sell-off triggered by signs the ECB may accelerate an end to its stimulus. Germany’s DAX gained 0.3 percent on the news and European stocks took their cue from a recovery in Asian trading. MSCI’s index of European stocks rose 0.2 percent as the euro hit its highest in three years at $1.2128 and last traded up 0.8 percent at $1.2126. Read More…

Major Index Futures

  • Market Overview – Thursday the small caps led the day with the Russell 2000 jumping 1.7%, while the Dow and the Nasdaq advanced 0.8% each, finally the S&P 500 added 0.7%. Volume fell on the Nasdaq and rose on the NYSE.
  • S&P 500 futures-  2,773 -bullish, support at 2,750 no resistance at the moment other than a psychological one at 2800.
  • Dow 30 futures 25,685 – bullish, support at 25,000, no resistance at the moment other than a psychological one at 26,000.
  • Nasdaq 100 Futures6,717– bullish, support near 6,600 which is close to 7,000 on the Nasdaq 5000 composite.
  • SmallCap 2000 futures 1591 – bullish – breaking out past the previous all-time highs 
  • Charts Below are 2-Month Daily 


Commodities

  • All commodities are on a bullish rally in the last month especially as bitcoin and other cryptocurrencies have been on the retracement.
  • Gold – $1326 – bullish, looking to try and break out past 1370
  • Silver -17.055 – bullish, just had a  breakout past 17 but facing strong resistance past that price level.
  • Crude Oil – $63.41 – bullish, breaking out past 62.50, all technicals look bullish for a continued rally on oil
  • Natural Gas – $3.107 – bullish, Natural Gas is finally be breaking out past 3, there is strong support at 2.8

 

  • Charts Below are 2-Month Daily


Sectors

  • Bearish Sectors – Utility stocks as tracked by (XLU) were not the only defensive sector that fell hard on Wednesday. Real Estate (XLRE) is the only other sector that is below the 50-day moving average.
  • Bullish Sectors – Energy (XLE) and Technology (XLK) are very bullish, so is Basic Materials (XLB).
  • The charts below show how the sectors did yesterday and the 5-day sector performance. 

  • The chart below shows the last 20 days of sector performance 
  • 2-month charts 

  • I have added some key industries to the 2-month charts below 
  • I like using industry ETF’s for investing in retirement accounts that don’t allow shorting or options.


Currencies

  • USD – $91.16 – slightly bearish  –  the dollar is looking for support, is there is a break in support at $91 the dollar can fall hard and fast.
  • The Charts Below are 3-Month Daily


  • Cryptocurrency 1-month Charts
  • Everything you could possibly care to know about Bitcoin explained in 4 minutes Click Here…
  • Bitcoin – bearish – Bitcoin plunged yesterday after South Korea, the cryptocurrency’s largest market, said it’s working on a bill to ban cryptocurrency trading. “There are great concerns regarding virtual currencies, and the justice ministry is basically preparing a bill to ban cryptocurrency trading through exchanges,” Justice Minister Park Sang-ki said in a press conference, according to Reuters.

  • Bitcoin Cash- sideway, after retracing hard, all crypto’s are being affected since yesterday’s news with since even the Bank of Japan Governor Haruhiko Kuroda warning that Bitcoin isn’t behaving like a normal currency and is being used for speculation.

  • Ethereum – recovering after the negative Bitcoin news yesterday adding to the list of countries concerned about Bitcoin and cryptocurrencies is Denmark’s central bank governor who called Bitcoin a “deadly” gamble and told investors not to “come and complain to us if it goes wrong,” and the Monetary Authority of Singapore has warned investors they need to “understand the significant risks” and exercise “extreme caution” with Bitcoin.

  • Litecoin – bearish  – falling hard after the negative news out of South Korea yesterday.


Tackle Trading 25

  • Welcome to the new Tackle Trading Covered Call List for 2018
    • For Slightly Bullish Trends
      Naked Puts, Covered Calls, and for stocks over $100 Bull Put Spreads
    • For Neutral Trends
      – Iron Condors are great for stagnant stocks
    • For Slightly Bearish to Trends 
      – deep-in-the-money covered calls or Bear Call Spreads for stocks over $100
    • (be careful with overly aggressive directional trades like Shorting or buying Puts)


Trading Thoughts

  • 0  (sideways) Market Bias – I expect the markets to open mixed this morning, even though most media sources are predicting a strong open I am feeling that on a Friday after a great week like this one we may see some profit-taking. So I am not feeling very bullish at all.
  • Good luck in your trading and I wish you a very prosperous 2018!

Bearish                                                      Neutral                                                       Bullish

-3                         -2                -1                   0                   +1                    +2                    +3

 


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Hector Duenas Jr. started his trading journey during the height of the tech bubble in 2001 as part of the 90% that loses money in the stock market.

A Rich Dad conference in 2016 changed his life and now he writes the Morning Market Reports, the Market Scoreboard, blogs, and appearances on the Coaches Show and the Cashflow Club for Tackle Trading. Hector specializes in cash-flow strategies such as Covered Calls on the Tackle 25 Watchlist, the Personal Gold System, Cashflow Condors, and speculating on Futures.

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