Next week will be perhaps the most important week of the year. Given the number and size of companies reporting, I can't emphasize enough to keep your seatbelts on. Thursday is the biggest earnings day.
Important Economic Events that happened last week: 1. The Economic Forum in Davos was downright pessimistic. Maybe a little bit overdone, but still these are CEO's, hedge fund managers, ect. all gathering in one lump sum all coming out with one idea, and that was that 2019 has got a lot of pessimism to it.
2. The week began with the International Monetary Fund (IMF), and for those of you who don't know the IMF came out and downgraded 2019 Global Growth. This is the 2nd time they've came out and downgraded global growth.
3. The largest semiconductor company - INTC - came out with bad Earnings. Semiconductor's are a leading indicator of the Technology sector. And it shouldn't be anything new when I say that the Technology sector leads the broader stock market. It's really not just Intel. I can't really remember any other time in my career where so many CEO's are displaying so much uncertainty in their projections moving forward.
4. China is pumping serious liquidity into their system. They're out there with a firehose just spraying massive massive liquidity all over the place like there's no tomorrow. As a trader, this makes me nervous. When China is spraying liquidity like that, that means they're seeing major major headwinds.
Take it for what you will, this is all just my interpretation. All I know is that when you start hearing a week or two of discussions on the mainstream news about the market heading for new all time highs, it's probably time to put your seatbelt back on.
Goodluck out there next week gentlemen, RH
Last Week's Post: Beautiful example of why I use this on a week-to-week basis.
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Been a very interesting week here gentlemen. Let's see if we can't hit the upper expected move and get a reaction, but as of now we're above both gravity points.