Tag: DOW (INDEX:DJI)

Hello traders everywhere. China's economic growth sank to its lowest level in almost 30 years as the trade war with Washington deepened a slump that is weighing on the global economy. Growth in the world's second-largest economy slipped to 6% in the three months ending in September, down from the previous quarter's 6.2%, data showed Friday. It was the weakest level since China started reporting data by quarters in 1993.

Last week President Trump agreed to delay a tariff hike on Chinese goods and said Beijing promised to buy up to $50 billion of American farm goods. That announcement brought about an initial burst of enthusiasm, but that soon faded after Beijing failed to confirm the scale of possible purchases, and officials said the two sides still were working out details. The slowdown and weakening consumer demand add to headaches for Chinese leaders as they fight a 15-month-old tariff war with the U.S. that has sapped China's exports.

Stocks traded lower Friday but remained on track to post solid weekly gains after the release of better-than-expected earnings. The Dow traded 100 points lower, while the S&P 500 pulled back -0.32% and the Nasdaq shed -0.8%. The DOW was up +0.5% for the week heading into afternoon trading. The S&P 500 and NASDAQ were up +.80% and +.79%, respectively, for the week. The major indexes will end the week within striking distance of their record highs. Continue reading "China Weighs On Stock Market" →

Hello traders everywhere. Back in August, I wrote that we seem to "always be one tweet away" from either disaster or prosperity. Well, today we have prosperity after President Trump told reporters on Thursday that talks between the two countries were going "really well." His comments came after he tweeted that he would meet with Chinese Vice Premier Liu He at the White House on Friday. The meeting is scheduled to take place at 2:45 p.m. ET.

That comment and tweet have sent the stock market higher, erasing October's losses. The DOW was up almost 500 pts at one point but has settled around +400 pts up +1.6% on the week. The S&P 500 and NASDAQ followed suit rising +1.6% and +1.9%, respectively.

Bitcoin continues to trade right below its 200-day MA, but it did have a positive week gaining +2.3% trading around the $8,000 level. We are still looking for a move lower, and our key level to watch will be 7,714.70. A move below that level will trigger a red weekly Trade Triangle signaling a long-term downtrend. Continue reading "Friday's Rally Erases October Losses" →

Hello traders everywhere. As I sit here and watch the DOW drop over 500 pts and the NASDAQ drop over 130 pts I can't help but think and feel like I've seen this before. Does this feel familiar to you?

If not it should, especially if you open a 1-year chart and look at Q4 2018. Yup, there it is, a significant drop to start Q4 of 2018 much like we see this week. The question is, will history repeat itself or is it just a short-term bump in the road.

Concerns around the economy were sparked on Tuesday after the Institute for Supply Management (ISM) said U.S. manufacturing activity fell last month to its lowest level in more than 10 years.

The weak data sent the major indexes tumbling on Tuesday, the first day of the fourth quarter. The Dow dropped more than 300 points while the S&P 500 slid 1.2%, their most significant one-day drops since Aug. 23. Those losses were enough to wipe out the Dow and S&P 500's gains for the entire third quarter. Both indexes had gained 1.2% in the previous quarter. Continue reading "Q4, 2018: Is That You?" →

Hello traders everywhere. The stock market reversed course Friday afternoon erasing earlier gains after reports that the White House is considering limits on U.S. investment in China, aggravating the long-standing trade dispute between the globe's two largest economies.

Trump administration officials are discussing ways to limit U.S. investors' portfolio flows into China. One of those options includes limiting all U.S. investment in China.

The DOW turned flat, erasing a gain of about 130 points after the report. The S&P 500 also reversed all of its gains to trade down -0.5% amid losses in communications services, utilities, and technology. The Nasdaq is being hit the hardest dropping -1.1%.

Shares of Alibaba, Tencent, Baidu, and other Chinese companies, in particular, plunged on the latest U.S.-China headlines, with BABA falling -6%. Those shares all trade on Nasdaq which will now post a weekly loss of over -2% joining the other major indexes with weekly losses. The DOW will lose -.3, and the S&P 500 will lose -.9% on the week.

Key Levels To Watch Next Week:

Continue reading "Time To Sell Chinese Investments" →

Hello traders everywhere. Stocks rose Wednesday after President Trump announced that a U.S.-China trade deal could arrive sooner than expected. However, gains were kept in check as Wall Street assessed House Speaker Nancy Pelosi's announcement that she would launch a formal impeachment inquiry on Trump.

The Dow traded 180 points higher, the S&P 500 was up 0.2%, the Nasdaq climbed 0.30%, and the Dollar rose +.55% back above $99.

Keep an eye on the 50-day moving average for the three major indexes as the NASDAQ has broken below the MA, and the S&P 500 looks to be testing it, sitting just above its 50-day MA.

U.S. crude oil futures shed as much as -2.7% to $55.73 a barrel amid worries about weak demand and excess supply. Oil has since backed off that low but is still trading right around $56 a barrel.

Bitcoin has headed lower losing -3.2% on the day backing up the -11.4% loss on Tuesday, it's third-biggest daily loss of the year, testing its 200-day MA.

Key Levels To Watch This Week:

Continue reading "China Deal Trumps Impeachment Inquiry" →