WHO, FED, APPLE and IMPEACHMENT

Headlines:

GOP lacks votes to block impeachment witnesses: 

              This is a surprise turn of events if it is correct.  If the Democrats are able to roll out Bolton, perhaps Kelly and

              others, we would expect things to get more difficult for President Trump and the administration.

British Airways and United halt all flights to and from China, Starbucks closes 200 stores in China.

              This is a sign of the seriousness of the Coronavirus developments.  Please note that when SARS was an issue

              in 2003 and 2003, China was approximately 4% of global GDP, it is estimated to be closer to 17% today.  In

              addition the service sector of the economy is larger than it was in the early 2000’s.

Federal Reserve to leave rates unchanged:

              For the market the key is what the Fed has to say about the latest developments in the U.S. and the global

              economy.  How much will the China developments negate the positivity surrounding the signing of the

              Phase 1 trade deal between the U.S. and China?  Watch for signals on whether the FED will dial back their

              purchase of T bills, signaling a less aggressive stance (QE) and if so how will the stock markets react if there

              is a change in purchase levels.

Apple posts record result, record revenue on the back of strong sales for iPhones, apps and Air pod products.

WHO will update on the coronavirus situation at 14:00 from Geneva.  Important to hear what they have to say on the status of the possible pandemic.

https://www.who.int/docs/default-source/coronaviruse/situation-reports/20200128-sitrep-8-ncov-cleared.pdf?sfvrsn=8b671ce5_2

We are advising clients to be respectful of all the moving parts that can effect the markets in the next 12 hours!

Important charts to focus on:

USD INDEX, has broken higher, if the Fed is dovish we would look for this to turn lower in the short term.

The VIX index has retraced back to the 16.50 level, but is holding the support level of the trendline from August.

S&P has held the support level from back in October.

Gold having moved higher on the back of the Coronavirus worries, is consolidating and we look to trade the breakout of the consolidation pattern.

Contact us if you are interested in receiving real time trading signals. In doubt? Check out our track record below!

TickerDate OpenedEntry PriceStopTarget PriceCurrent Price% Change
Long EURCHF Put Option, Strike 1.0650, Expiry 15.4.20202020/01/151.0757 (0.00620)1.06905 (0.00622)+0.32%

Visit our Position Tracker to look at all of our realized trades and proven track record! 
2018: 45 Trades, Hit Ratio 53,66%, Profit +35,87 %
2019:   31 Trades, Hit Ratio 45,16%, Profit +26,97%

– Mark W

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