JFarrish January 18th

JimsNotes.com Selling in banks and weaker dollar lead downside OUTLOOK: January 18th The markets tick lower to start the holiday-shortened week. More chatter about the new administration in Washington got the blame as investors continue to wrestle with the direction and catalyst for stocks. His renewed statements on drug companies and prices sent the sector lower again with biotech leading the downside. The banks were lower despite the positive earnings from Morgan Stanley losing 3.2% as a sector to start the week. There is plenty of earnings on tap today with Citigroup and Goldman Sachs reporting.  The next couple of weeks will be headlined by earnings and likely setting the tone for the near term direction. Six of the eleven sectors ended lower for the day as consumer staples (XLP), utilities (XLU) and energy (XLE) led the upside. The defensive posturing for the day was obvious in the results. XLP reversed the selling trend and gave some hope to the sector short term. XLU moved back to resistance near the 200 DMA. The downside was led by financials (XLF), industrials and healthcare (XLV).  Trump is impacting the healthcare with continued comments on drug pricing and financials were hit with some profit taking in the bank stocks. Watching how the sector responds today with more banks earnings on the docket. That put the S&P 500 index at 2267 off six points for the day.  The negative tone on Monday becomes the new buzz for the week and we will watch to see how it plays out. Gold (GLD) moved higher gaining 1.4% clearing $115.17 as the dollar gives a boost to the metal. The dollar index (DXY) tested 100.75 support as the buck continues under pressure from investor views of the Fed. The dollar fell 1% helping oil and other commodities in the process.  The emerging markets (EEM) are positive as a result of the weaker dollar. The Volatility Index (VIX) offered some intraday activity moving to 12.7 before settling at 11.8. Some anxiety showing to start the week and worthy of keeping an eye on the index. The scans for Monday leaned to the negative, but there was enough activity from the weaker dollar to add upside in the commodities led by gold (GLD) breaking above resistance and continuing the upside off the bottom reversal. Gold miners (GDX) broke from the consolidation range adding to the upside push off the December lows. Corn (CORN), Soybeans (SOYB) and agriculture (DBA) all moved higher clearing the next level of resistance. Solar (TAN) added to the upside move as well on the reversal low. The move in biotech (IBB) erased the upside move from last week and keeps the sector in limbo. Banks (KBE) fell 3.3% and broke support in the trading range from the last six weeks. Negative sign for the sector and watching how it unfolds along with resulting opportunities. Pharma (XPH) reacted to the Trump comments heading lower and testing support at the $38.75 level.  Treasury bonds (TLT) rallied on the day as money rotated towards safety... the cup bottom pattern is of interest both to the sector as well as the sentiment of investors.  Subscribers get  >>more KEY INDICATORS/SECTORS TO WATCH Not Yet a subscriber?  Subscriber Quick Link:  JIMS TRADING STRATEGIES How Do I Get: KEY INDICATORS SECTORS TO WATCH TRADING SCANS ENTRY, EXIT & TARGETS? SUBSCRIBE for FULL ACCESS 1 Year -  Only $750 Jimsnotes.com was created by Jim Farrish with the goal of educating investors about trading with discipline.  Jim knows the risk of losing money will increase without disciplined trading strategies, and current market analysis.  Always invest according to your own risks, disciplines and objectives. Jim's Notes 321-255-1995 |  Jim@JimsNotes.com | JimsNotes.com 2101 South Waverly Place, Suite 200-A Melbourne, FL 32901 LIKE US ON FACEBOOK Not a Subscriber Yet?  Order Now