Week of December 31st Stock Market Watch

There is just one more trading day left in what has been a wild ride for stocks this December. Typically, when we get close to year-end, trading volume and volatility dies down. However, that has not been the case this year. In fact, the day after Christmas the Dow had its largest gain in history (+1,000 pts). Despite the gains stocks had after Christmas, they still finished relatively flat on the week.

Here are some of the main concerns investors are having right now:

  • The government shutdown
  • Rising interest rates
  • Trade disputes with China (tariffs)
  • Fears of an economic downturn
  • Loss of confidence in the Federal Reserve Bank
  • Crashing oil prices
  • Uncertainty with Brexit

The VIX closed at 28.34 on Friday. That said, traders appear to embracing the shift from low volatility to high.

Here are how some of the most actively traded index ETFs performed over the week: SPDR S&P 500 ETF (SPY) +0.23%, iShares Russell 2000 ETF (IWM) +0.81%, SPDR Dow Jones Industrial Average ETF (DIA) +0.69%, Invesco QQQ Trust (QQQ) +0.45%

Here are how some of the most actively traded commodity and interest rate ETFs performed: United States Oil Fund (USO) -1.95%, iShares 20+ Year Treasury Bond (TLT) +0.26%, SPDR Gold Shares (GLD) +1.53%

This is a shortened week for the stock market, as it’s closed on New Years Day.

Economic Releases:
3 Jan 2019- Jobless Claims 8:30 AM ET; ISM Manufacturing Index 10:00 AM ET

4 Jan 2019- Employment Situation 8:30 AM ET; EIA Petroleum Status Report 11:00 AM ET

Key Earnings:
3 Jan 2019- RECN

4 Jan 2019- LW

From all of us at TVC, have a happy, healthy, and profitable New Year.

Week of December 24th Stock Market Watch

Stocks continue to sell off as we head into Christmas and New Year’s. If the situation doesn’t improve, this will be the worst year for stocks since 2008. Over the last week, stocks like Alibaba, Amazon, Facebook, and Unitedhealth fell by more than 10%.

That said, there are a number of reasons to hate this market, they include:

  • The government shutdown
  • Rising interest rates
  • Fears of an economic downturn
  • Loss of confidence in the Federal Reserve Bank
  • Crashing oil prices
  • Uncertainty with Brexit

It’s probably safe to say, there will be on Santa Claus rally this year…

The VIX closed at 30.11 on Friday. Last week we mentioned that when VIX gets above 30 and above, the market is in state of panic. Well, welcome to the panic room.

Here are how some of the most actively traded index ETFs performed over the week: SPDR S&P 500 ETF (SPY) -7.59, iShares Russell 2000 ETF (IWM) -8.70%, SPDR Dow Jones Industrial Average ETF (DIA) -7.18%, Invesco QQQ Trust (QQQ) -8.39%

Here are how some of the most actively traded commodity and interest rate ETFs performed: United States Oil Fund (USO) -11.55%, iShares 20+ Year Treasury Bond (TLT) +1.89%, SPDR Gold Shares (GLD) +1.42%

The markets will be open for a half day on Monday, and closed on Tuesday, for the Christmas holiday.

Economic Releases:
27 Dec 2018- Jobless Claims 8:30 AM ET; New Home Sales 10:00 AM ET

28 Dec 2018- International Trade In Goods 8:30 AM ET; EIA Petroleum Status Report 11:00 AM ET

Key Earnings:
None

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