Monday – January 7, 2019

By January 7, 2019 Dark and Early

Market opened flattish, but turned mildly red to begin the new week. Last Friday’s explosive gains are holding in. 91% of volume were advancers, which hadn’t happened in a while. There was a much bigger than expected Job number for December, providing comfort that the US Economy has not stalled. Fed Chair Jerome Powell provided some cover for stocks on Friday, clarifying monetary policy and explaining the Fed is paying attention to developments and will react with support. That sent stocks ripping higher. The term autopilot was taken off as it applies to quantitative tightening. The focus returns back to Trade with midlevel meetings in Beijing this week between the US and China. President Trump plans to meet with a Chinese delegation when he’s out in Davos in 2 weeks. There’s movement, but it’s not clear what a deal would look like. The issue of intellectual property is so far from agreement. Asian Markets were higher overnight with some optimism. Europe is lower on more Brexit concerns. Crude prices are higher again in early trading, with WTI back at $49. Interest rates are lower as is the Dollar. Volatility continues. This is a big week for innovation, with the JP Morgan Health Care conference in SF and the Consumer Electronics Show in Las Vegas. The news flow shall be constant. There’s already been a theme of M&A in Biotech. Disney is raising prices at Disneyland ahead of the new Star Wars land launch. There’s a lot going on.

Have a great morning,

Mike Frazier