In addition to these two trades, this is the key level I’m watching on the SPY.
In addition to Brexit, these are my favorite longs and this is the level where I’ll start shorting.
The markets have shrugged off weak warnings in financials, China slowdown, three trade war negative headlines, and a potential European recession. In Powell the Market Trusts. Here’s what I see in this environment.
Gold, Silver, and Copper are telling an interesting story about the current market sentiment with three setups to watch.
When shorting a stock or sector, look for the weakest link. Right now, one of those weak links is the consumer staples sector. I picked KO to the downside because it is in this sector, and it has the technicals plus the squeeze to back the idea up.
Tomorrow morning, we will get earnings results from several key airlines as well as bank stocks. Is the economy slowing down, or not? Well, the tone of this earnings season will be dependent on proof in these numbers. At this point, we are two weeks into 2019 and we have seen a couple stand out sectors. What does that mean and how should we trade them? The market is directly at resistance; let’s watch for a catalyst to make or break this market at 2600.
