Wall Street Strategies
Hello! Sign in or Register


Afternoon Note

Waiting for Outcome

By Charles Payne, CEO & Principal Analyst
5/7/2019 1:02 PM
Take a Free Trial
Try Charles' premium stock selection services free for 7 days. Check it out in real time! You will get actionable advice, trading ideas and email alerts.

I’m not surprised selling has picked up.  Now, the question is whether yesterday’s lows hold on a closing basis (they’ve been violated intraday).  If the 50-day doesn’t hold, then we look to the 200-day moving average, which is right around the recently tested 25,500.

I think it’s important to close above the 50 day, which is 26,017 for the Dow, because in recent trading, the inability to hold has been like a trapdoor to the 200 day.  Interestingly, the last big challenge wasn’t about fundamentals but miscues by the Fed and media-fueled fears of a recession. Challenges that investors had to wait weeks to see the outcomes.  No recession, and Fed came around to play ball (after that wayward Dec rate hike).

The good news is we only have to wait 72 hours for resolution on the current Wall Street worry.

Dow Jones Industrial Average

Volatility Begets Volatility

When the market starts to gyrate, it tends to bounce around for a while, as spiking volatility feeds on itself.  The VIX volatility index is up 53% in the last two session, although, it is significantly below the December highs.

VIX

The great news with selling at the tail end of earnings season is I know what I want to own, and I’m thrilled to be able to buy names I missed.  On that note, we must continue to refine the buy list and see where talks and scuttlebutt around those talks take us in the next couple of days.


Comments
Charles. As always spot on. With China's numbers (due to President Trump Tariffs, ) has Dropped and China's imports have increased. We actually had a great laugh late night,at Bloomberg FINALLY stated " I guess we have to say Trumps tarriffs HAVE HURT China, and lowered their exports while China had increased its imports" . Please know that we don't watch Bloomberg, but since it's not FBN hrs we can catch a glimpse of the LIARS from a Bloomberg DEMS worldwide financial fake news. We believe president Trump 100% will succeed & are 100% with president Trump till the Chinese government signs what was agreed too, protecting our IP ,no more thefts or forced partners free fair reciprocity trade. We suspect the mrkt finishes in the green today 5/8/19. Thank you Charles PAYNE & FBN.

Ed on 5/8/2019 9:32:23 AM
 

Add Your Comment


Submitted comments are subject to moderation before posting.


Home | Products & Services | Education | In The Media | Help | About Us |
Disclaimer | Privacy Policy | Terms of Use |
All Rights Reserved.