Stock Market Early Morning Insights – September 9, 2016

Here are my trading results since June 12 to September 7, 2016 using at $25,000 account.  You don’t need a large account to make money: https://1drv.ms/u/s!AshhTFqIPakDgsI3tm_MfUR9YiGF9A

For those who attended my last webinar series and those who are interested in attending I will hold another series of webinars that teach the techniques that I use beginning in late October.  If you are interested contact me at ron@highgrowthstock.com.

Reaction to the release of Apple’s new iPhones and iWatches was negative, and consequently the stock fell sharply. This seemed to put a damper on the broader market, and many tech stocks struggled. AAPL formed an ugly candle to generate an Effort to Fall VPA flag on heavy volume. It is down again this morning in premarket trading.

I’m sure the Apple products will sell well, but investors and traders expect radical innovation with every new release. I cannot imagine smart phone technology can offer much more than what we already have. The fear must be that current iPhone users do not see the need to upgrade at each release cycle.

Oil was a story of the day when inventory numbers showed a sharp drawdown in reserves. Oil futures were up over 4% for the day, but they are falling this morning, down 2.33% as I write this. The NASDAQ composite fell back into its consolidation range after what look like a promising breakout on Wednesday. Surprisingly, the internals were slightly positive with 1219 advancers compared to 1190 decliners.

The strength was primarily in Exploration and Production, Biotech and Specialty Pharma stocks. Some of the tech groups held up, and Medical Devices also did well. Surprisingly, the defensive stocks such as Household Products and Packaged Food were weak.

Yesterday the stock indexes looked extremely bullish, but not so today. The NASDAQ composite has not fallen far, but the reversal yesterday changed the tone of the market. European markets are trading in the red, and US stock index futures are following to the downside. The VIX rose 4.8% yesterday and is up another 4.67% this morning as traders are anticipating more downside.

The long bonds collapsed yesterday and are putting pressure on the market. The 30-year treasury bond futures are down another .74% today after falling sharply yesterday.

After yesterday’s reversal, I am going to be careful about initiating any long positions unless they are in groups that are moving up. Make sure you know where you will exit your positions as you go into the trading day. I use stops, and may get stopped out of some long positions today, but that is the cost of doing business.

Stock futures have fallen sharply since 6 AM central time in sympathy with the European markets, and probably in response to the collapse in bonds and falling oil prices

Have a good weekend.

STOCK MARKET EARLY MORNING INSIGHTS

Stock Market Early Morning Insights is a product of Ron Brown Investing. The complete report and all the charts are produced daily before the market opens and distributed by email to subscribers. Reports published on the HGSI Blog are delayed and do not contain all the charts.  For more information about subscribing use this link. MORE INFO