Weekly Market Assessment
Finally catching a bid! This past week, we again dropped back below 18,000 in the Dow and the market for the fist time in 2 years had a down quarter! We left the first quarter down 1.4%, however as of today, we are now positive for the year! This shows the difficulty in trying to pick stocks and trade as every day has something different to offer which provides plenty of volatility to the market. The 10 Year Treasury Bond has dipped below the 2% level again which should, as always, create some concern over the sentiment in the market. Every rally in the market is met with sellers pushing the market back down to levels where buyers step back in. The battle continues to play out near or at major moving average as the buyers are trying to outdo the sellers and vice versa. Time will tell when one side wins and the market direction takes off to new levels or begins to let gravity set in. From a macro point of view, it remains a bull market with low interest rates, low commodity prices and a stronger dollar which paints a pretty bullish picture for the market.
Has good news become bad news for the market again? Last Friday, we received a poor jobs report were only 126,000 jobs were created compared to the 247,000 estimate. Whoops! Well since the market was closed due to Good Friday, it had a negative reaction in the futures market as im sure the algorithms picked up on the huge miss. However, as of today we open with buyers stepping into the market which has rallied over 350 points since Good Friday! The reasoning goes back to the Federal Reserves dual mandate. Maximum employment and price stability. The market is looking at this jobs report and saying, there is no way the Fed could begin to even think about raising rates, so it looks like lower interest rates for longer is here to stay, therefore bid the market market back up! However this of course as of recently has been met by sellers stating that the market it priced to perfection and for now it seems like a wait and see for the upcoming earning season. When looking at the opening statement when comparing it to companies quarterly earnings report will the statement hold true or will the market rely on what really makes a market move... earnings!
The Rant: Going Off on a Tangent with My 2 Cents: Making the Watchlist: Below are the stocks that I will be looking at over the coming months. I will provide the the current stock price and why I am watching them. I will comment on them as I continue to keep an eye on them. You will be able to see and follow their growth and/or decline. Chart links may be attached.
See What I'm Trading:You can now view all my real-time trades by following this link, BlackPacific Capital . This new site shows my trades, in real time the minute they are bought and sold. Below you can also click on the stock symbols or prices which will lead you to this new site. The site offers a full risk/return profile and video detailing the strategy of the trade. Note: When looking at the option positions every contract equals 100 shares.
From the Trading Floor to the Option Pit: A quick look at whats on the trading desk:
S&P 500 (SPX) -No Trades
SPDR S&P 500 EFT (SPY)- I have bought a 211 "PUT" for next week as the market seems to have found resistance at this level.
VelocityShares 3x Long Crude Oil ETN (UWTI)- Bought this triple leverage ETN at $2.27 and held it for a week where I sold it at $2.75 for a 20.24% return.
FireEye (FEYE) -I have bought weekly "CALLS" at the $42 strike.