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Morning Market Report for Wednesday January 17th, 2018

January 17, 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

  • Goldman Sachs Inc (GS) on Wednesday reported a quarterly profit that trumped analysts’ estimates – as strength in its investment banking business helped cushion the blow from a slump in trading. Read More…
  • MBA Report – U.S. mortgage application activity rose to its strongest level in six weeks even as 30-year home borrowing costs jumped to their highest levels since March.
  • IBM shares rise after Barclays double upgrade – Barclays cited a handful of reasons for moving the stock to “overweight” from “underweight”, saying the company could emerge as the next important cloud vendor after Amazon (AMZN) and Microsoft (MSFT).
  • Rolls-Royce shares jump – Britain’s Rolls-Royce (RR) said on Wednesday it was considering the sale of its commercial marine business, which has been hit by weak demand in offshore oil and gas markets, as part of a restructuring of the company into three core units.
  • Bitcoin slumps to $10,000 – Bitcoin touched a peak of almost $20,000 in December but has since been roiled by several large sell-offs. Other cryptocurrencies plunged as well. Ethereum and Ripple were both down heavily after reports South Korea and China could ban cryptocurrency trading, sparking worries of a wider regulatory crackdown.
  • Bitconnect shuts down platform – BitConnect has been accused of constituting a Ponzi scheme with its own cryptocurrency Bitconnect coin, and several figures in the space, including the founder of ethereum, Vitalik Buterin, have levied criticisms against it in recent months. The company blamed several factors for the closure including bad press, DDoS attacks and, most notably, the receipt of cease-and-desist letters from regulators Texas State Securities Board and the North Carolina Secretary of State Securities Division.

Major Index Futures

  • Market Overview – The Markets yesterday all hit new highs and then all fell off with some major profit taking. By the days end the Dow Jones industrial average fell -0.04%, the Nasdaq fell -0.51%, the S&P 500 lost -0.35%, and the small-cap Russell 2000 lost a whopping -1.22%.
  • S&P 500 futures-  2,792 -bullish, looking to again break out past 2800.
  • Dow 30 futures 25,937 – bullish, looking to again break out past 26,000.
  • Nasdaq 100 Futures6,791– bullish, looking to again break out past 6,800
  • SmallCap 2000 futures 1584 – bullish, looking to again break out past 1600 – watch those cashflow iron condors 
  • 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 – $1335 – slightly bullish, looking to try and break out past 1370, support at 1300
  • Silver -17.170 – slightly bullish, just had a  breakout past 17 but facing strong resistance past that price level.
  • Crude Oil – $63.64 – slightly bullish, broke out past 62.50, but facing a slowdown past that level,
  • Natural Gas – $3.185 – slightly bullish, broke out past 3 but facing a slowdown past that level, 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 of key sector ETF’s

  • Key Industries ETF 2-month charts  
  • I like using industry ETF’s for investing in retirement accounts that don’t allow shorting or options.


Currencies

  • USD – $90.45 – 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 – bearish, 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 – U.S. stock futures point to a higher open for Wall Street this morning as investors assess the earnings of the big banks.

Bearish                                                      Neutral                                                       Bullish

-3                         -2                -1                                     +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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