Morning Market Thoughts

by DAN Good morning. Futures are a bit mixed this morning, with the tech-heavy Nasdaq still struggling, but the S&P and Dow futures up just a bit. I think there is still some selling to be done, so I’m being cautious about taking any new positions today. If Amazon (AMZN) holds above yesterday’s close (up about $7 bucks pre-market), then I’ll probably sell some puts. But everything is for rent today because of the weakness in semiconductor stocks, as well as various other loose bricks in the Wall of Worry.

I haven’t seen a lot of news about yesterday’s new “hack attack”. CNBC noted that, so far, the hackers have received about $12,600 in ransom. Combined with the $50,000 reportedly taken in by the WannaCry hack, the hackers will be able to buy a fully loaded Tesla Model 3, and still have some cash to split up. Perhaps these hacks will amount to nothing more than nuisances. But it’s important to follow the news on this.

Tomorrow, the Fed will announce its findings on the stability of our banking system. The report will specify how much banks are able to pay shareholders in the way of dividends. Look for the banks to start announcing dividend increases and stock buy backs after the release. I think this will start juicing financial stocks, many of which are already starting to catch some bids.

Yesterday I taught a workshop on trading the first hour of the day, with some emphasis on VWAP and pivot points to determine entry points. If you weren’t able to attend, Gary is making it available for viewing. He’s also provided a pretty significant discount on the 59 Minute Trader — our most popular course ever. Check it out!

Have a great day, and I’ll see you in the forum.

–Dan

Market Update