Wkly Round-Up thru Jan 11th 2019; Swing for the Fence!

Hey Everyone! As we kick off 2019 we are seeing some interesting moves in price action and I am sure most folks would like to see where we are going from here? We need to be very careful with any moves higher off our December lows. Take a look at my take in this week’s weekly round-up.

Market Sound bites:

• Already this year we’ve seen the FEDs do an about face on their forward guidance; –well least verbally they have stating they will be more data dependent not only in future interest rate hikes but also in their $50B per month QT Program…Powell has walked back his “auto pilot” statement regarding QT which rocked the markets last year…As such we’ve seen the market value of the S&P jump over $1.1 T in the first 6 trading days in 2019…

• And speaking of records the largest point swing in the DOW on record was 4,378 in the advance/decline line surpassing the prior record made in Dec 2008 during the great financial recession from the extreme lows in Dec to the highs this early January…looking at this as a statistical standpoint has shown that when the Adv/Dec line had swings of at least 3,000 points in a 10 day period saw the S&P move higher over the next 12 months by 9.8%…(happened only 11 times)

• Issues are still present in the markets; US – China Trade; FED Monetary Policy; BREXIT; US Political Dissonance; ECB Growth issues; US Corp Bond Markets[60% of US Investment Grade Bonds are rated BBB; bottom of ladder before becoming junk]

Don’t Be A Rat Brain Trader — Trade Smart !!
hpb