- Morning Briefing w/ KevinD
- Posts
- Tuesday January 2 @ 9:00am
Tuesday January 2 @ 9:00am
Profit taking grips the market as Apple's weakness spreads
Matthew
January 02, 2024
“The new year stands before us, like a chapter in a book, waiting to be written.”
Every full-time trader I know has read books like “The Man Who Solved the Market" or “Stock Market Wizards”. These books contain invaluable knowledge for anyone trying to generate a full-time income from trading.
But, we all know how it goes… we say we’ll read a book. Then we buy it. Then it sits on our shelf after reading the first 50 pages (and that might even be generous).
What if you could read these books in just 20 minutes, with full comprehension of the material?
Shortform’s top-tier book summaries and interactive exercises make that possible. Shortform book summaries are…
extremely detailed, so you get key points at a deep level
interactive with exercises to help you apply new knowledge
equipped with smart insights to help you connect key ideas
Don’t dismiss the powerful insights in these classic trading books. It could be the difference in your trading career.
Use Shortform to read books in a fraction of the time it would normally take.
Readers of this newsletter can get started using this exclusive LINK.
It grants you a free trial AND 20% OFF when you sign up.
They also just launched Shortform AI, a powerful browser extension that instantly generates high-quality summaries for blogs, articles, emails, and even YouTube videos in one click. Check it out!
The Markets Overnight
🌏 Asia: Down
🌍 Europe: Down
🌎 US Index Futures: Down
🛢 Crude Oil: Up strongly
💵 Dollar: Up strongly
🧐 Yields: Up significantly
🔮 Crypto: Up strongly
🌏 Major Global Catalysts
Oil surges due to escalating tensions in the Red Sea, triggered by Iran deploying a warship to the region. This follows the sinking of Houthi boats by the US, which had fired upon US warplanes defending a Maersk container ship from their attack. (link)
💵 Economic Reports and Events Today
Consensus forecasts shown
9:45am Final Manufacturing PMI 48.4 Level of a diffusion index based on a survey of about 800 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories. (link)
10:00am Construction Spending m/m 0.6% Change in the total amount builders spent on construction projects. (link)
📰 Selected Earnings Releases
Consensus Estimates shown
After Hours Today:
None
Pre-Market Tomorrow:
UNF UniFirst EPS 2.18 Rev 589.63M (link)
🔮 Selected Analyst Ratings Changes
AAPL Apple Barclays Downgrades to Underweight Lowers to 160.00
EXPE Expedia Group Wells Fargo Upgrades to Equal-Weight Raises to 159.00
LUV Southwest Airlines Evercore ISI Group Downgrades to In-Line Targets 35.00
U Unity Software Piper Sandler Downgrades to Underweight Raises to 35.00
📉 Stocks In Play
AAPL Apple Dwon 2.3% on a Barclays analyst downgrade to underweight. (link)
ASML ASML Holdings Down 4% and infecting other semi-conductors stocks as sales of the company's chip making machinery to China have been restricted. (link)
YY Joyy Down 10% after BIDU cancels deal to buy their streaming unit. (link)
TSLA Tesla Up 1%, rallying strongly off earlier lows on delivery numbers that slightly beat expectations. (link)
Crypto stocks, CLSK, MARA, HIVE, etc strongly higher, >12% as the New Years crypto rally continues this morning with Bitcoin crossing the important 45,000 level. (link)
💬 Commentary
Stocks finished the year quite weak on Friday, with the Nasdaq leading the way down by over 1%, while SPY and IWM were down 0.7%, with the highest volume seen in close to two weeks. Staples and healthcare were the only sectors to close the day higher, though their gains were marginal. Reits, consumer discretionary, and communications led most sectors to the downside.
It's another quiet week for earnings, but a couple of big names are reporting late in the week. However, there is a parade of important economic data scheduled throughout the week, starting with the FOMC's December meeting minutes release on Wednesday, manufacturing and services PMIs, and a plethora of jobs data culminating with the always closely watched Non-Farm Payrolls report on Friday.
The selling seen last Friday is accelerating this morning, partly due to weakness in China and increasing tensions off Yemen, but mainly attributed to profit-taking, primarily in the technology, communications, and consumer discretionary sectors. Apple's slide on an analyst downgrade is leading this downturn. Energy and, to a small degree, industrials are the only sectors escaping the selling so far this morning. The dollar up is rallying and yields are exploding higher leading to weakness in the bond market. Sentiment is weakening, and while we expect to see some attempts to buy the dip today, we should anticipate this selloff to continue throughout the week until it's halted by the emergence of a strongly bullish catalyst. This catalyst could materialize as early as tomorrow's post-open data dump, or the afternoon's FOMC minutes, but it might take until the end of the week for sellers to lose their grip on the market.
How would you rate today's brief? |
Was this email forwarded to you? Subscribe if you like it!
Want to sponsor our newsletter? Go here.