Morning Market Thoughts

by DAN Good morning. Stocks are opening lower again today as the correction continues. Just a quick comment on patience.

Look at the chart of the S&P during the latter half of 2016. It traded sideways for 4-1/2 months during the latter half of the year. Use that as a perspective for the current range, which has been in effect for the last month or so. You will see most of your gains during distinct times each year. But if you fritter away those gains during the subsequent resting phase, then you’re right back where you started when the market becomes more favorable to making money. So appreciate the fact that the market needs rest once in a while. Give it room to breathe.

Under Armour (UAA) is the latest victim of the implosion of retail stocks, down more than 25% at the open. This “might” be a bit overdone and could be a profitable trade on a dead cat bounce. Just be careful, because there is a LOT of bad news associated with this stock — missed estimates in both earnings, revenues and full year guidance. Also, their CFO is leaving. That’s a lot of bad things to digest.

Don’t forget that Apple (AAPL) reports earnings after the bell today, and this will certainly move tech stocks tomorrow. It’s always risky to hold a stock over earnings, so respect your money by appreciating the risk.

See you in the forum.

–Dan

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