Wkly Round-Up thru Jan 18th 2019; Half Full or Half Empty??

Hey Folks, we have a nice long holiday weekend for the US markets with Equities closed on Monday for Martin Luther King Day. We will see action in the Futures markets with Globex opening normal time Sunday evening at 6 PM ET and then closing the following day at 1 PM ET with a re-open at 6 PM ET on Monday.

All I can say about these markets is WOW! We’ve seen some very wild and crazy market action with Q4 2018 now behind us and a Fast and Furious start to 2019.

Here are a few sound bites as we kick off Q4 Corp Earnings and 2019:

• The numbers are still coming in but we are seeing that earnings grew last year at an estimated 22% yet PE Ratio fell so dramatically that it was the 5th largest since the 1940s…According to analysts at UBS when we’ve seen this much of a large scale drop in PEs found that the median returns the following year were around 16%…For 2019 the consensus estimates for Earnings Growth are 5.7% making the 2019 PE trading for around 15.4 times earnings…so the bar has been set very low and should earnings come in at these levels we’ll see higher market price action…so we will have a battle ground zone in the S&P from 2600 to 2800 with the markets looking to see if the glass is half full or half empty…
• Issues are still present in the markets; US – China Trade although we seem to be getting rumors on that front, both from the White House on suspending all tariffs in order to entice China while they are also offering up $1 Trillion in new spend for US Goods and Services to reduce the massive trade imbalance; FED Monetary Policy; BREXIT; US Political Dissonance with Gov Shutdown will begin to weigh on US Q1 GDP; ECB Growth issues; US Corp Bond Markets[60% of US Investment Grade Bonds are rated BBB; bottom of ladder before becoming junk]

This week’s Weekly Round-Up:

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