Good morning folks,
The markets have been extremely volatile as earnings begins. We were flashing green earlier this morning then Switzerland shocked the markets by scrapping their exchange rate peg giving Gold a big bounce. There was an immediate drop in our futures and now we are climbing back slowly. Yesterday, oil had a spike as it closed for trading and it looked as though oil may have found its bottom and that may carry over into today. There will never be a time when everything has complete clarity and you can anticipate things with 100 percent certainty in the markets or in individual stocks. BBRY had a rumor come out near the end of the day and had a huge spike only to have it evaporate in after hours trading.
You can have total clarity with your risk reward ratio. As long as you have a plan where you have clearly defined entry and exit levels for both losing and winning trades you always know before hand what your potential outcomes will be. I get contacted all the time by individuals that ask me what I think of a stock that they are already in and they ask me if I think it will go up because they bought it higher and they really want someone to tell them that it will go back up and they can break even or even make a little money. When I ask where their stop is >they don't have one, when I ask what there target was >they don't have one. If the chart looks terrible it puts me in a very awkward position. I have to tell someone that the stock that they are losing money in looks like it could go lower and in some cases much lower. I refuse to tell someone what they should do with a stock at that point, I can only suggest what I would do. Even with that I am uncomfortable, the company could have tremendous news a week later and rocket higher. I would feel terrible if they took a big loss because I told them I would sell it.
In this type of market where there is uncertainty everywhere and volatility you need to be extremely quick. If you don't have the stomach for this type of action my best advice is to sit on the sidelines and watch. Work on building trading strategies that are focused on risk reward. Use the time to educate yourself and build the wish list of stocks you want to own.
Stock on my radar
JRJC active premarket can be a pop and flopper, MNDL thin one pr, SMSI possible continuation, ETRM possible continuation, AFFX grinding higher, AMPE had a nice little bounce yesterday possible continuation, CUBA big spike premarket,
Small oils are catching a bounce off the oil spike, gold miners active off of Golds bounce
UWTI USO TVIX TZA IWM IBB NDAQ SPY NUGT JDST for market sentiment
Seeking Alpha
Today's Markets:
In Asia, Japan +1.9% to 17109. Hong Kong +1% to 24351. China +3.5% to 3336. India +2.7% to 28076.
In Europe, at midday, London -0.7%. Paris -0.9%. Frankfurt -0.6%.
Futures at 6:20: Dow -0.6%. S&P -0.6%. Nasdaq -0.5%. Crude -2% to $47.53. Gold +1.1% to $1247.70.
Ten-year Treasury Yield -5 bps to 1.84%
Notable earnings before today's open: BAC, BLK, CVGW, C, CBSH, FAST, FRC, HOMB, LEN, PPG, TSM
CNBC in the news
 | IN THE NEWS TODAY |
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| U.S. stock futures were highly volatile in early trading—in a continuation of the wild swings on Wall Street lately. The Dow heads into today’s session on a four-day losing streak for the first time in three months. (CNBC) |
| Adding a major wildcard into the mix, the Swiss National Bank unexpectedlyscrapped its cap on the franc today, sending the safe-haven currency soaring as much as 30 percent in value against the euro. (CNBC) |
| Bank of America (BAC) reported quarterly profit of 25 cents per share, 6 cents below, with revenue falling below consensus as well. BofA’s results were impacted in part by a drop in fixed income trading revenue. (Reuters) |
| BlackRock (BLK) today reported earnings that beat estimates, though revenue was slightly below expectations. The investment advisory firm alsoraised its quarterly dividend by 13 percent and increased its stock buyback program. (AP) |
| Best Buy had better than expected holiday season sales, but also said it would increase spending in order to promote sales growth. (Reuters) |
| Canada’s BlackBerry (BBRY) fell sharply in premarket trading, after denying a report of a Samsung approach about a potential takeover. Shares of the struggling smartphone maker rose nearly 30 percent in the regular session. (CNBC) |
| China's Xiaomi took the wraps off its new flagship phablet in Beijing today, positioning the device as the budget smartphone maker’s answer to theApple (AAPL) iPhone 6 Plus. (CNBC) |
 Media mogul Barry Diller joins us at 8 a.m. ET to talk about Woody Allen’s new TV show for Amazon (AMZN) and the Sony (SNE) hacking. |
| Continental Resources (CLR) boss Harold Hamm has pledged stock valued at $2.6 billion as collateral for a personal loan—just days after his ex-wife cashed a $974 million check in their divorce. (WSJ-subscription) |
| President Barack Obama today plans to announce executive action to giveup to six weeks of paid family leave to federal employees. Meanwhile, he’s going to push for all workers to be allowed some paid sick leave. (NY Times) |
| An Ohio man claiming sympathy with Islamic State militants was arrested and charged in connection with a plot to attack the U.S. Capitol with guns and bombs, court documents disclosed. (Reuters) |
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| BY THE NUMBERS |
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| It’s a busy day on the economic calendar, starting with the 8:30 a.m. ET release of weekly initial jobless claims, December producer prices, and the New York Fed’s January survey. |
| Dow component Intel (INTC) and oilfield services giant Schlumberger (SLB) are both on today’s after-the-bell earnings list. |
| The Philadelphia Fed’s January survey is out at 10 a.m. ET, and the Energy Department publishes at 10:30 a.m. ET its weekly report on natural gas inventories. |
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| STOCKS TO WATCH |
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| RadioShack (RSH) may file for bankruptcy protection as soon as next month, according to the Wall Street Journal. |
| Caesar Entertainment (CZR) filed for Chapter 11 bankruptcy protection for itslargest operating unit this morning, a move it had signaled Wednesday. |
| Family Dollar’s (FDO) deal to be acquired by Dollar Tree (DLTR) now has theapproval of another proxy advisory firm, Glass Lewis, which has reversed its stance on the deal. |
| Credit Suisse (CS) will ask U.S. regulators today to allow it to manage pensions. Permission would be required following the bank’s guilty plea to criminal charges that it helped U.S. clients evade taxes. |
The New York Times (NYT) now has Mexican billionaire Carlos Slim as its largest shareholder, after he exercised warrants that doubled his stake to 16.8 percent.
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This year, one of the things I would like to accomplish is putting together a group of aspiring and active traders/ investors for monthly informal social gatherings where we can talk about stocks, the markets, trading and investing strategies. Last night was the first meeting and while it was a small group it was really a lot of fun. If you are in Vegas and interested in being part of such a group email me @ Alphawolfvegas66@gmail.com
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BEST OF SUCCESS!
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