We had another choppy day yesterday and manged to close out green on the day. Oil held up extremely well even though all the rumors of a 5 percent production cut by OPEC were denied. The weakness in the IBB is was what really caught my attention yesterday.
Earnings have been a mixed bag and last night was no different with MSFT reporting good numbers and AMZN disappointing. After being a third of the way through earnings season, the prediction of an earnings recession by some, is starting to look more likely with the majority of companies reported either missing expectations or providing weak guidance.
The type of bounce that I was hoping we would get has not yet materialized and is looking less and less likely. Volatility could be here to stay for awhile and the markets could remain under pressure for quite some time. There is a completely different feel to the markets and while there are still opportunities out there its important to remember that cash is a position too. You don't have to trade if you can't get your ideal setup. If you struggle with quick hit trades then sit on your hands.
We have a GDP report before the open and that could set the tone for the day. Japan going to negative interest rates seems to be giving us a nice little pop premarket.
I am watching the IBB closely LABD for potential short and LABU for potential long.
Today's Economic Calendar
8:30 GDP Q4
8:30 International trade in goods
8:30 Employment Cost Index
9:45 Chicago PMI
10:00 Reuters/UofM Consumer Sentiment
1:00 PM Baker-Hughes Rig Count
3:00 PM Farm Prices
My focus ETF & ETN List8:30 International trade in goods
8:30 Employment Cost Index
9:45 Chicago PMI
10:00 Reuters/UofM Consumer Sentiment
1:00 PM Baker-Hughes Rig Count
3:00 PM Farm Prices
Volatility Oil Biotech
UVXY XIV TVIX UWTI DWTI GUSH DRIP IBB LABU LABD
Gold Dollar
GLD NUGT JNUG DUST JDST GDX GDXJ UUP
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