Stock traders and investors alike continue to wonder what the heck is going onAll Eyes on Wall Street:
All eyes on Wall Street will likely be focused on tomorrow’s Fed meeting in which the Fed will likely chicken out and ease the market again due to the recent stock market bloodbath. But, with employment numbers (allegedly) improving, the tapering freight train may just keep going, however with uber-dove Janet Yellen to take over after tomorrow’s meeting, I really have no idea. Farewell to Dr. Bernanke, as he leaves with the bulls dying on a vine.
We are due out for multiple earnings reports this morning, including Yahoo! (YHOO), Ford (F), American Airlines (AAL), Comcast (CSCMA), Amgen (AMGN), and Pfizer (PFE). I might also add that Apple’s (AAPL) not-so-good earnings report last night might take investor sentiment down a notch or two (or three).
Additionally, we are due out for the Durable Goods Orders and Case-Shiller Home Prices reports before market open and the Consumer Confidence Report at 10:00 AM EST. All forecasts are not looking good for these reports.
Hindsight is a Beach and We’re Playing on It:
Yesterday we were again 100% correct in the bloodbath episodes, with the S&P 500 (SPY) losing .46%, the Dow Jones Industrial Average (DIA) losing .26%, and the NASDAQ 100 (QQQ) losing another 1.08%. For ETFs, had we traded short and leveraged ETFs off of my correct prediction yesterday, we would have likely had the following outcomes:
ProShares Short S&P 500 ETF (SH): +.46%
ProShares UltraShort S&P 500 ETF (SDS): +1.05%
Proshares UltraPro Short S&P 500 ETF (SPXU): +1.58%
ProShares ShortDow 30 ETF (DOG): +.31%
ProShares UltraShort Dow 30 ETF (DXD): +.61%
ProShares UltraPro Short Dow 30 ETF (SDOW): +.90%
ProShares Short QQQ ETF (PSQ): +1.00%
ProShares UltraShort QQQ ETF (QID): +1.94%
ProShares UltraPro Short QQQ ETF (SQQQ): +2.71%
Not a bad day, let’s keep the ball rolling today.
Your Stock Market Forecast for January 28th, 2014:
I predict another down day for stock markets. There, I said it. Another down day.
Exchange Traded Fun:
Since we are AGAIN going short, the following ETFs could serve us well if we are correct:
ProShares Short S&P 500 ETF (SH)
ProShares UltraShort S&P 500 ETF (SDS)
Proshares UltraPro Short S&P 500 ETF (SPXU)
ProShares ShortDow 30 ETF (DOG)
ProShares UltraShort Dow 30 ETF (DXD)
ProShares UltraPro Short Dow 30 ETF (SDOW)
ProShares Short QQQ ETF (PSQ)
ProShares UltraShort QQQ ETF (QID)
ProShares UltraPro Short QQQ ETF (SQQQ)
Fun Fact:
According to MarketWatch.com, this year’s Super Bowl tickets have dropped to the lowest levels since 2002 due to frigid temperatures! Then again, everyone I know will be watching it inside on their huge TVs, so I really don’t think anyone cares if it is that cold.
The Long and Short of It:
Investors will likely keep moving to the sidelines today as they eye the all important FOMC meeting and Dr. Bernanke’s last cast of his magic wand. With such declines in the past three days, I really do wonder if the tapering will continue, or if Uber-dove Yellen will fire up the ol’ easing iron again. Time will tell.
This stock market forecast is for educational and informational purposes only. It is not intended to be investment advice nor an investment recommendation. Past performance is no guarantee of or indication of future performance and your performance may vary widely from any that may be indicated in this column. There is risk of loss in all investing and trading activities and you should consult your financial adviser before making any investment decisions.
Disclaimer: The content included herein is for educational and informational purposes only, and readers agree to Wall Street Sector Selector's Disclaimer, Terms of Use, and Privacy Policy before accessing or using this or any other publication by Wall Street Sector Selector or Ridgeline Media Group, LLC.