Post feedState of the Union
I have been out of the office today and for the remainder of the week, so you will have to excuse the lack of timely posts. I was able to watch prices occasionally through the day, but only through my cell phone, which means I have not gotten all the info needed to digest exactly 
what happened today until now.
Apparently our supply of oil is low, and demand continues to be high. We all know what that does to prices, right? The Dow was heavily impacted by this...but why? You might want to look at the transportation average first, to put together the puzzle pieces. (.DJT). Down 3%! If your price of oil is high, this is going to be a bigger expense for transportation companies. Look at Fedex (FDX) as an example. Industrial stocks took a plunge because of this since they are now going to pay more to have products shipped.
Good thing our watchlist this week was comprised of energy stocks primarily. 6 of our 7 stocks were up big today, only downer was UNH. Another interesting element of our environment is the advance/declines. Declines were not that far ahead of advances. It was only slightly in favor of declines. This is where averages can be misleading. CSCO kept the Nasdaq alive today, but I am still perplexed about the overall state of the market. The last piece of this puzzle is investor concern of possible rate hikes in the future.
Watch carefully, especially commodity stocks such as oil & gold. No matter what the averages say, people are still buying out there. Make sure that you are also diversifying and hedging yourself against being wrong about the market. It's not a bad thing to trade bullish and bearish at the same time. You won't get all the trades right, but it will offset any losses.
Anyway, it was nice to have a week off from Master Talk, but I am looking forward to next weeks session. BTW- I am sure you all have seen the advertisement for our investor conference in Orlando. Even though my name is not on the schedule, I will be presenting at the conference. My name is not up there since there was a discrepancy in what I was going to teach. I would love the opportunity to meet each of you...So if I don't meet you here in Utah while you are at your 3 or 4 day class, come see me in Orlando.
I will post tomorrow morning, have a great night!
what happened today until now.Apparently our supply of oil is low, and demand continues to be high. We all know what that does to prices, right? The Dow was heavily impacted by this...but why? You might want to look at the transportation average first, to put together the puzzle pieces. (.DJT). Down 3%! If your price of oil is high, this is going to be a bigger expense for transportation companies. Look at Fedex (FDX) as an example. Industrial stocks took a plunge because of this since they are now going to pay more to have products shipped.
Good thing our watchlist this week was comprised of energy stocks primarily. 6 of our 7 stocks were up big today, only downer was UNH. Another interesting element of our environment is the advance/declines. Declines were not that far ahead of advances. It was only slightly in favor of declines. This is where averages can be misleading. CSCO kept the Nasdaq alive today, but I am still perplexed about the overall state of the market. The last piece of this puzzle is investor concern of possible rate hikes in the future.
Watch carefully, especially commodity stocks such as oil & gold. No matter what the averages say, people are still buying out there. Make sure that you are also diversifying and hedging yourself against being wrong about the market. It's not a bad thing to trade bullish and bearish at the same time. You won't get all the trades right, but it will offset any losses.
Anyway, it was nice to have a week off from Master Talk, but I am looking forward to next weeks session. BTW- I am sure you all have seen the advertisement for our investor conference in Orlando. Even though my name is not on the schedule, I will be presenting at the conference. My name is not up there since there was a discrepancy in what I was going to teach. I would love the opportunity to meet each of you...So if I don't meet you here in Utah while you are at your 3 or 4 day class, come see me in Orlando.
I will post tomorrow morning, have a great night!
