Is Uncertainty Back In The Mix So Soon?

While it may sound strange, perhaps the best word to describe the market action on Monday is, disappointing. Yes, the Dow Jones Industrial Average popped 288 points. The S&P 500 gained 1.1%. The NASDAQ 100 surged 1.5%. And oil jumped 5%. Yet, based on the early indications from the futures and some of the developments of the day, the end result left something to be desired.

With the two big, bad fears that had been the primary drivers of the recent correction - fears that the Fed would overshoot and the trade war with China would become a drag on the global economy - appearing to be resolved, investors came into Monday morning in a good mood. Stock futures had been pointing to a gain for the Dow of more than 450 points. And based on the way the trend-following algos tend to "chase their tails" on days when the indices experience outsized moves, one might have expected the early gains to build as the day wore on.

But instead of traders falling all over themselves to cover their shorts, add some exposure, and put risk back on, we got the opposite. Exactly one minute after the stock market's opening bell rang, the sellers attacked. And by 11:47 am EST, the venerable DJIA had given back 306 points of the day's gain. Heck, at one point, both the Russell 200 and S&P Midcap indices were red on the day. The word you are probably looking for is, ugh.

What Gives?

So, what gives here? Why was good news not viewed as such? Why weren't the sellers overrun with buy orders? After all, Powell had talked nice and Trump had made a "deal" with China. And since the outlook for the U.S. economy, and, in turn ...

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The NEW Daily Decision for 12.3.18 - Fears Fading Away As Santa Loads His Sleigh


The State of the Markets:

Unless you've been living in a cave or don't have access to a TV, computer, smart phone, or even a newspaper, you likely know that Presidents Xi Jingping and Donald Trump laid the ...

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Fears Fading Away As Santa Loads His Sleigh

Unless you've been living in a cave or don't have access to a TV, computer, smart phone, or even a newspaper, you likely know that Presidents Xi Jingping and Donald Trump laid the groundwork for a trade deal ...

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The NEW Daily Decision for 11.30.18


Today's Portfolio Review

The G20 meeting presents a quandary here. While this week's clarity from the Fed represents a significant improvement in the near-term environment, the potential for bad news from the Trump/Xi dinner could easily push ...

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The NEW Daily Decision for 11.29.18 - One Worry Removed


The State of the Markets:

It didn't take the news-reading algos long to find what they were looking for in Jerome Powell's speech yesterday. And to his credit, the Fed Chairman didn't make it difficult for either ...

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One Worry Removed

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Is Some Hope Creeping In?

Don't look now fans, but there might be some hope creeping into the stock market. With just 23 trading days left in the year, there seems to be some hope that we've seen the bottom of the recent ...

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2018: A Tough Row To Hoe

For most investors, 2018 is turning out to be a tough row to hoe. Suddenly, nobody is talking about global synchronized growth, low inflation, the benefits of tax cuts, and 20% earnings growth. No, all that is now so 2017 ...

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Near Term - It's All About The Headlines. Longer-Term - It's About...

A busy few days of entertaining family in Colorado provided a reprieve from the keyboard and the markets over the weekend. Thus, I'm going to let the indicators do most of the talking to start this holiday-shortened week.

Briefly ...

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The NEW Daily Decision for 11.19.18 - Near-Term: It's All About The Headlines. Longer-Term: It's About...


The State of the Markets:

A busy few days of entertaining family in Colorado provided a reprieve from the keyboard and the markets over the weekend. Thus, I'm going to let the indicators do most of the talking to ...

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The Straws Breaking The Market's Back

Monday was another volatile day on Wall Street as the Dow Jones Industrial Average plunged 602 points. Granted, problems at Apple (AAPL) and Goldman Sachs (GS) accounted for 170 of those points. And yes, the machines were clearly at work ...

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Understanding the Current Earnings Game

When stocks enter a corrective phase, the main question investors tend to ask themselves is, has anything changed from a macro point of view?

One of the problems with trying to answer this question is that corrections generally are born ...

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