Markets are strong today, despite the Dow Jones selling off this morning due to Boeing (BA). The S&P 500 Index and Nasdaq are edging higher today – led by tech stocks like Apple (FB) and Facebook (FB).
Here’s are some specifics:
- Boeing had its second deadly accident – raising concerns about its best-selling plane.
- Tech stocks are leading the S&P 500 Index and Nasdaq higher with Bank of America upgrading Apple and Nomura upgrading FB this morning.
- China auto sales declined for an eighth consecutive month.
- Tesla re-evaluated its store-closure decisions and noted more stores would remain open.
- The President of the U.S (POTUS) is looking to request $8.6B for additional barriers for the southern U.S. budget proposal. There will be a proposed $2.7T in cuts to non-defense discretionary spending over the next 10 years.
- Saudi Arabia is planning to extend its oil output cuts in April.
Is today’s action a dead-cat bounce or are stocks set to decline some more?
Keep in mind, 2019 started with two straight months of buying, which turned out to be the best start for the S&P 500 Index in nearly three decades.
Now, it’s no surprise that some traders are bracing for the worst and potentially looking to take profits at these levels. I won’t be shocked if we see stocks pull back more from here.
Take note, I’m studying market volatility, reading through economic reports, and following stocks and what the Federal Open Market Committee (FOMC) is saying about interest rates and the overall health of the economy. I do my research to see the big picture.
Even though I’m primarily focused on the macro view, it doesn’t mean I’m not focused on stocks.
For example, I’ve been watching Tesla Inc. (TSLA)… and I actually alerted Weekly Money Multiplier (WMM) clients about this trade:
Here’s what’s going on with this TSLA options trade:
How many traders out there actually put their money where their mouth is?
I know I do… and this wasn’t the only trade where I did that…
(Now, you don’t need a whole lot of capital to make money with options… not only that, there is a safe and simple way to make money on stocks and exchange-traded funds (ETFs) when prices start dropping, if you’d like to learn more about this strategy, click here.)
Earnings are starting to cool down until next week, but we’ve still got some stocks reporting like Adobe (ADBE), Stitch Fix (SFIX) (reporting after the close today), Oracle (ORCL), and Dollar General (DG) this week.