Tag: DOW (INDEX:DJI)

S&P 500 and DOW In Correction Territory

Posted on by The INO.com Team

Hello traders everywhere. Thursday's positive gains failed to follow through on Monday after the Easter weekend with a widespread sell-off taking hold and pushing all three indexes into correction territory.

Tech troubles and tariffs have pushed the S&P 500 through the 200-day moving average which viewed as a critical level of support. Technical traders and chartist alike believe that this breach can foreshadow even more significant declines down the road.

Now let's talk about the word correction. A correction is defined as "a reverse movement, usually negative, of at least 10% in a stock, bond, commodity or index to adjust for an overvaluation".

Correction Territory

With that in mind, all three major indexes have dipped and flirted with correction territory today. At their lows of the day the S&P 500 was down 10.5%, The DOW was down 11.6%, and the NASDAQ was down 10.2% putting all three indexes in correction territory. Only the NASDAQ has been able to rebound, but it's still incredibly close to closing the day in a correction. Continue reading "S&P 500 and DOW In Correction Territory" →

Stocks End Tough Quarter Higher On The Day

Posted on by The INO.com Team

Hello traders everywhere. The stock market is looking to close out a tumultuous first quarter of 2018 with positive daily gains in a holiday-shortened trading week albeit on light trading volume heading into the holiday weekend. The Easter holiday may be a much-needed break for beat-up traders to lick their wounds and start fresh come Monday.

For the first time in in the previous nine quarters, the S&P 500 and DOW are posting quarterly losses breaking an impressive winning streak. While the NASDAQ is posting a positive quarterly gain of 1.5% marking seven straight winning quarters, which is surprising given the recent rout in the tech sector. With the likes of Facebook (FB), Amazon (AMZN), Netflix (NFLX), Alibaba (BABA) and many other tech stocks taking huge losses recently.

Easter Holiday

The U.S. Dollar is closing out the first quarter of 2018 with its fifth straight quarterly loss, a loss of 2.3%. Data on Thursday showed U.S. consumer spending rose marginally for a second consecutive month in February as households boosted savings, the latest indication that the economy lost momentum in the first quarter. Continue reading "Stocks End Tough Quarter Higher On The Day" →

Easing Trade Tensions Move Stocks Higher

Posted on by The INO.com Team

Hello traders everywhere. After all of the tough talk on tariffs and looming trade war, it seems that China and the U.S. both agree that they need to work together. The news came out today that the two countries are in fact negotiating behind closed doors despite the shouting match in the media.

All three indexes are on the rise today after having a disastrous close to last week with the DOW leading the charge erasing Friday's losses and trading 500+ points higher.

Easing Trade Tensions

Facebook Inc. (FB) continues to come under pressure after the Federal Trade Commission said it has an open, non-public investigation into the company's privacy practices. It hit a session low of 149.02 in early trading and remains down 3% on the heavy trading volume.

Bitcoin continues to come under pressure and is trading back below 8,000 and looking to test the low set in early February of 6,801.47. However, bitcoin ETFs have gotten a vote of confidence from the CBOE. In a letter to the SEC, the CBOE said that "As the volumes continue to grow, especially on regulated U.S. markets, the overall spot bitcoin market looks more and more like a traditional commodity market and CBOE continues to believe that the spot market is sufficiently liquid to support a bitcoin ETP."

Key Levels To Watch This Week:

Continue reading "Easing Trade Tensions Move Stocks Higher" →

Stock Market Retreats Into Weekend

Posted on by The INO.com Team

Hello traders everywhere. After opening slightly higher for the day, the stock market has once again retreated into negative territory. The S&P 500 and DOW are both posting losses of over 4% on the week while triggering new red weekly Trade Triangles. The NASDAQ is heading for a 5% loss on the week.

The recent volatility over trade turmoil has turned gold's "good week" into a great week as traders flock to the haven. Gold is up 1.6% on the day and 2.7% on the week, making it the best weekly gain in over a month.

Stock Market

Crude oil is looking to close out a great week with a 4.8% gain, its best weekly gain in ten weeks. Oil has maintained the $60 a barrel level as OPEC and its partners have trimmed inventories, helping crude stockpiles in the U.S. tick below the five-year average mark.

Bitcoin is going to post a weekly gain of 7.8% for the week after two consecutive weeks of losses. However, the push to break its 200-day MA has come under pressure as Bitcoin retreated from that level. The RSI also remains below the 50 level indicating that a bearish move could still be in play. Keep a close eye on Bitcoin as it tries to fight off the potential death cross.

Key Levels To Watch Next Week:

Continue reading "Stock Market Retreats Into Weekend" →

Crude Oil Rises Alongside Stocks

Posted on by The INO.com Team

Hello traders everywhere. Crude oil climbed to its highest level in six weeks, a 2.6% gain to $65, after inventories in the U.S. dropped for the first time in a month, catching traders many off guard.

Refiners and brokers pulled more than 2.6 million barrels of crude from American storage facilities last week as many analyst and traders were expecting an increase. The withdrawal occurred amid speculation that the U.S. may intensify sanctions against Iran, OPEC's third-largest supplier.

Check our Robert Boselgo's updated 2018 crude oil outlook that we posted this morning.

Crude Oil Rises

The stock market is anxiously awaiting Fed Chairman Jerome Powell's news conference this afternoon at 2 pm where it is widely expected that he'll announce a rate hike after wrapping up the FOMC's two-day meeting. The expectation is for a 25 basis-point bump in rates.

Investors will also look for clues about the Fed's tightening trajectory for the rest of 2018.

Key Levels To Watch This Week:

Continue reading "Crude Oil Rises Alongside Stocks" →