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Morning Market Report for Tuesday January 16th, 2018

January 16, 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

  • Major indexes are set to open at record levels – Futures on the Dow Jones Industrial Average surged more than 200 points on Tuesday, indicating that the blue-chip index could open above 26,000 for the first time as the fourth-quarter reporting season kicks into high gear. The same could also happen with the S&P500, and the Russel 2000. Read More…
  • Cryptocurrencies Plunge as Bitcoin Suffers Double-Digit Selloff – Declining Japanese and South Korean trading volumes as well as fears over rising scrutiny from global regulators were blamed for spooking the market. Read More…
  • 10,000 Daimler employees walk off their posts for one hour in a push for higher wages – the one hour strike sought to persuade employers to give engineering workers around Germany more pay and a shorter working week. Read More…
  • Citi profit tops estimates – Citigroup, the fourth-largest U.S. bank by assets, said it expects to benefit in future quarters from the new tax law as its tax rate falls to about 25 percent in 2018 from 30 percent in 2017. Read More…

Major Index Futures

  • Market Overview – The Markets were closed for Martin Luther King Jr on Monday. So, looking at Friday, the Dow Jones industrial average rose 0.9%, while the Nasdaq and the S&P 500 added 0.7% each. The small-cap Russell 2000 tacked on 0.3%. Volume was higher on the Nasdaq and preliminary data showed it slightly higher on the NYSE.
  • S&P 500 futures-  2,801 -bullish, breaking out past 2800.
  • Dow 30 futures 25,997 – bullish, breaking out past 26,000.
  • Nasdaq 100 Futures6,810– breaking out to new highs
  • SmallCap 2000 futures 1601 – bullish – breaking past 1600 – manage those condors early 
  • 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 – $1342 – bullish, looking to try and break out past 1370, support at 1300
  • Silver -17.370 – bullish, just had a  breakout past 17 but facing strong resistance past that price level.
  • Crude Oil – $64.33 – bullish, broke out past 62.50, all technicals look bullish for a continued rally on oil
  • Natural Gas – $3.119 – bullish, Natural Gas is finally broke 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 
  • Check out XAL the Airlines ETF that is breaking out 
  • I like using industry ETF’s for investing in retirement accounts that don’t allow shorting or options.


Currencies

  • USD – $90.56 – bearish  – the dollar may be having a price breakdown. However, if the price does not continue to fall this might be a good time to play a short time bounce in a contrarian play. Listen to this week’s podcast to learn more about playing a reverse breakout/breakdown. Click Here for Podcast
  • 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 – 2018 has not started well for cryptocurrencies, with last week marking the second week in a row of poor performances.

  • Bitcoin Cash- bearish – Cryptocurrency prices plummeted late last week following reports that South Korea may be preparing to ban all virtual currency trading in the country.

  • Ethereum – bullish retracement, The prices of major cryptocurrencies plunged sharply, with Bitcoin, Ethereum and Ripple all suffering severe double-digit percentage losses amid a broad-based selloff.

  • Litecoin – bearish – South Korea’s news this week follows drastic moves taken by China earlier, which is now trying to shut operations that produce bitcoin, a process known as mining.


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

  • Bullish Market BiasMarket – Hopes of strong quarterly earnings, supported by steep cut in corporate taxes, and solid global economic growth has bolstered Wall Street’s optimism in the start to 2018. Today market may all open to new highs. What was expected to happen during the year has happened in just a few days. Go Bulls!

Bearish                                                      Neutral                                                       Bullish

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

 


You can follow daily trade adjustments and updates on Twitter, Facebook, or text “follow @tackletrading” to 40404 to get text alerts!

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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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All investing and trading in the securities market involves risk. Any decisions to place trades in the financial markets, including trading in stock or options or other financial instruments, is a personal decision that should only be made after thorough research, including a personal risk and financial assessment, and the engagement of professional assistance to the extend you believe necessary.

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Finance, Stocks, Market, Stock Market, Options, Trading, Tackle Trading, Stock Market Today, Stock Market News, Market Recap, Market Review, Forex, Commodities, S&P 500, Dow Jones, DJIA, Trading Videos, Active Trading, Active Traders, Day Trading

2 Replies to “Morning Market Report for Tuesday January 16th, 2018”

    1. HectorDuenas says:

      you are very welcome my friend

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