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Afternoon Note

Gyrations Continue

By Charles Payne, CEO & Principal Analyst
2/7/2018 1:39 PM
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I like the resolve seen in the market today, but it’s too early to say these shake-out attempts are over.  In fact, investors never had that primordial screaming period that the powers that be have been trying to exert.  Of course, the other side of that equation is that the powers that be still need to find a way to beat the market or justify their massive fees, and they might be the ones to blink.

They could also console themselves a higher market is a Pyrrhic victory. 

Continue to hold tight and not be lured or spooked into forfeiting your ownership of great companies because of the fickleness of crowds. 

50-day chart key resistance points: 

At midday, the markets are mixed after what looked to be a much lower start.   The Dow has been the best performer buoyed by Boeing (BA), which is back off to the races and nearing record highs.  The Nasdaq is the laggard today as technology is weak. Advancers are firmly outpacing decliners on the NYSE 2039/880, and while not as strong on the Nasdaq, they are still leading 1591/940.  Consumer Discretionary and Staples, Industrials, Real Estate, Telecom and Utilities are stronger today, while Energy and Technolgoy lag.

Speaking of energy, this morning we got the latest read from the Department of Energy, which showed a build of U.S crude of 1.9 million barrels last week, and output is not 10.25 million barrels per day.  The news has taken oil down over 3%. 

EIA Petroleum Inventories



Crude Oil

+1.9 million

+3.2 million


+ 3.4 million



+3.9 million

-1.4 Million



Looks like Senate Majority Leader Mitch McConnell and Minority Leader Chuck Schumer have decided to play nice and convince their parties to strike a two-year budget deal to avoid another shut down on Thursday.  Highlights include an increase of $165 billion spending for the miltary and $131 billion for domestic spending.  It does not however, address immigration.  Now, we will need to see if the House can rally around this and get a deal done.   

I'm getting the feeling that neither side of the aisle wants immigration reform, wall, lottery, chain migration not in budget deal. Build the WALL.

Robert Gunyan on 2/7/2018 2:51:03 PM

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