Quote of The Day “U.S. Citizen: 'There's no way 45 can do much more damage...'
45: 'Hold my beer...'”
― Unknown
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There's an old adage on Wall Street...
"Sell in May and go away."
The theory is that the best time to own stocks is the November to April period and on the flip side, one shouldn't own stocks during the summer months.
I neither have, nor will I conduct an exhaustive study to try to verify it empirically... In any case it seems folks got a bit carried away with the notion today... and for the last several days for that matter.
Like everything else in the markets, the "strategy" has to be taken with a grain of salt.
Fortunately, for me (and other day traders), it's irrelevant... we don't hold positions over night anyway. |
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How To Use TAOST Daily Wrap [Video] I should have added done and added this a long time... oh well... sue me. |
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Share... Friends don't let friends trade without TAOST
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Index, ETF and Select Single Stock Performance |
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A Few Headlines Of The Day - Traders came into markets that were under pressure this morning on the back of 45's tariff threat against Mexico... and they joined the fray. Markets were in sell mode, pretty much all day.
- According to Deustche Bank, 45's trade wars have cost the US stock market $5 Trillion... and counting
- In macro news, home sales stumbled, but the job market remained resilient
- U.S. oil dropped 3.8% on trade war fears
- CNBC All America Survey finds more Americans disapprove of 45's trade policies than approve
- There was more talk today about the bond market's warning signs of a collapse
- Apparel retail earnings haven't been this bad since The Great Recession
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TAOST ES Power Zones & POIs Today |
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| 15m Chart -- Price broke out of TAOST Power Cluster long before the beginning of the cash market... and never ventured back inside... |
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| 60m Chart - 2 clear chart patterns... |
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| 120m Chart -- A long swing to the down side... |
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| Daily Chart -- Self explanatory... |
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| Weekly Chart -- This is a big break... right down to the next support level around 2750. |
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Basic Index ETF Performance SPYThe SPY broke support convincingly today. The next level of potential support at the red horizontal line is a pretty big line in the sand. |
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And another thing CBOE 10 Yr Treasury Note Yield [TNX]Speaking of bond yields... The TNX represents the yield on the US 10 Year Treasury Note. Historically, lots of consumer debt has been priced off the 10 year since (as a US debt instrument) it's considered "risk free." Consumer finance and mortgage companies price your debt by using the 10 year as the base and then add more yield depending on the associated risk. As a result, there's TREMENDOUS importance attributed to the 10 year.
The 1% decline indicated by the red line might seem like a good thing... However, declining bond yields usually mean folks are rotating from more risky stocks to bonds thus the decline in yield we're seeing (bond yields are the inverse of bond prices... bond prices go up due to demand, yields fall... more on that some other time).
At any rate, when you hear the bond market is sending a bearish signal, think falling rates... like we have here. |
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And 1 more thing Bitcoin/USDSpeaking of bond yields... The TNX represents the yield on the
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TAOST Stalk Stock Service Corporation Intl [SCI]I like this Mid Cap for a potential pattern break out here. Wait for a pullback into the Triangle Pattern before you pounce. A drop through the rising trendline nullifies the pattern. |
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As always, make up your own mind and, more important, minimize your risk no matter what you do.
KIS,
The Trader
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P.S. Was this email forwarded to you? Get your own free ticket to the $ party here.
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