- Morning Briefing w/ KevinD
- Posts
- Wednesday January 10 @ 9:00am
Wednesday January 10 @ 9:00am
Markets very quiet ahead of tomorrow's consumer inflation report
Matthew
January 10, 2024
“Beyond mere recognition of support and resistance zones, true market understanding comes from anticipation of how other participants will act in different scenarios.”
As you know, I’ve been trading for 25 years.
One trade setup has become my absolute favorite. 📈
It has predictably created big winners.
I made a 55-minute video explaining what it is, and exactly how I trade it (with examples).
Just share this newsletter with 1 person and I’ll send the video to you for free.
Already got this video? We just restocked some new referral rewards 🎁👇
📈 The Markets Overnight
🌏 Asia: Down except Japan up strongly
🌍 Europe: Down slightly
🌎 US Index Futures: Near unchanged
🛢 Crude Oil: Up
💵 Dollar: Near unchanged
🧐 Yields: Down
🔮 Crypto: Down
🌏 Major Global Catalysts
US and UK forces repel largest Houthi Red Sea attack yet as global shipping rates continue to swell, nearly doubling since attacks began. (link)
💵 Economic Reports and Events Today
Consensus forecasts shown
10:00am Final Wholesale Inventories m/m -0.2% Change in the total value of goods held in inventory by wholesalers. (link)
10:30am Crude Oil Inventories -0.2M Change in the number of barrels of crude oil held in inventory by commercial firms during the past week. (link)
1:01pm 10-y Bond Auction Highest yield on 10-year bonds the government sold at auction, and the bid-to-cover ratio of the auction. (link)
3:15pm FOMC Member Williams Speaks about the 2024 economic outlook at an event hosted by RM Friedland and Webster Bank, in New York. (link)
📰 Selected Earnings Releases
Consensus Estimates shown
After Hours Today:
KBH KB Home EPS 1.69 Rev 1.62B (link)
Pre-Market Tomorrow:
INFY Infosys EPS 0.180 Rev 4.63B (link)
🔮 Selected Analyst Ratings Changes
AAPL Apple Redburn Atlantic Downgrades to Neutral Targets 200.00
HD Home Depot Wedbush Upgrades to Outperform Raises to 380.00
BE Bloom Energy Baird Upgrades to Outperform Raises to 22.00
ETSY Etsy Goldman Sachs Downgrades to Neutral Lowers to 80.00
SCHW Charles Schwab Citigroup Downgrades to Neutral Lowers to 70.00
SPCE Virgin Galactic Truist Securities Upgrades to Hold Raises to 3.00
📉 Stocks In Play
ISRG Intuitive Surgical Up 5% after reporting a 21% year-over-year jump in procedures for its da Vinci robotic surgical systems. (link)
BE Bloom Energy Up 5% on an analyst upgrade. (link)
AEHR Aehr Test Systems Down 19% as the company lowers full year revenue guidance while reporting an earnings beat. (link)
CHWY Chewy Down 6% on high volume. Reason unknown. (link)
ROMA Roma Green Finance Down 19% IPO priced at $4.00, opened at %9.05 yesterday, popped to $11.78 then very quickly fell apart closing at $2.90. (link)
Crypto related stocks are starting the day lower after yesterday's SEC hack and fake BTC ETF tweet. COIN, MARA, CLSK, RIOT, MSTR (link)
BTC Bitcoin Expectations are very high the SEC will make a Bitcoin ETF announcement today. (link)
💬 Commentary
Stocks opened much lower yesterday but recovered most of the gap down through the day. In the case of the Nasdaq, it actually closed a little higher, driven by continued strength from semiconductors. Small caps underperformed the large-cap indices, finishing well off the lows but down 0.89%. Staples and technology were the only two sectors to move higher on the day, while energy and materials held firmly at the bottom of the performance list. Bonds, the dollar index, and gold traded in a fairly tight range, seemingly on hold in anticipation of Thursday’s consumer inflation report, which could lead to repricing the probability of a March rate cut, currently sitting at about 65%.
Stocks are very quiet this morning, trading in a tight range near unchanged. It’s likely that we will continue this kind of price action throughout the day for reasons already mentioned, although we should be on guard for a sneaky trend day, as compression often precedes expansion. We’ll be watching semiconductor stocks again today, as well as healthcare, which has seen some very bullish price action recently and during this week's JP Morgan Healthcare Conference. However, it is becoming a little extended and may be due for a pullback. Additionally, we'll keep an eye on biotech, which is starting to garner a lot of attention.
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.