Down, up, down. The market starts 2019 undecided. Recovered from an early selloff with a 500+ point swing to almost +100, then back down, though well off the lows. The action leaves the major indices just below the 10 day EMA as they try to hold a relief bounce and move on through. Tried early on, didn't hold. Some new money came in on the weak open, but the lifespan was relatively brief, leaving investors watching whether the bounce can continue.
The President said the selling was a 'glitch.' If you define 'glitch' as a series of stories/events from bonds to trade to the Fed to economic data -- then yes, perhaps it was a glitch. The 'glitch' is still unresolved as of today though, again, stocks did come back from an early ugly selloff.
Yield curve continues to 're-flatten,' as bonds enjoy some money pushed their way, continuing the bond rally and yield drop. Fed trying to push rates higher, yields fall as it does. Nothing new.
All told, the market avoided an attempt to sell it off. Dow was just down 120 but is cutting the losses, NASDAQ flipping back to positive. Nothing major, but consolidating the initial bounce, trying to rest, recover, and perhaps continue the relief move.
Picked up some PG puts, closed the rest of the NVDA put position as the techs showing more strength than other parts of the market. Financials also showing some strength on the day -- after a lot of weakness.
SP500 -7.22, -0.28%
NASDAQ 3.51, 0.05%
DJ30 -95.21, -0.41%
NASDAQ 100 0.09%
Jon Johnson, Chief Market Strategist
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