Buy the Dip
March 22, 2017
The Dow Jones Industrial Average (DJIA) dropped to triple digits for its worst daily percentage loss since Sept. 13, amid a disastrous day for bank stocks. One of the worst hit areas was financial shares which slid on worries that President Donald Trump's tax reform and deregulation efforts will be delayed.
Also, the Nasdaq Composite (COMP) was even worse off than the Dow -- falling the most since Sept. 9, despite touching a record intraday high of 5,928.06 in early trading.
As well, the Russell 2000 Index (RUT) dropped into negative year-to-date territory, and the S&P 500 Index (SPX) logged its biggest loss since Oct. 11.
And adding fuel to the pull-back, Fed officials attracted attention, with Kansas City Fed President Esther George saying she currently sees an opportunity to remove some stimulus measures.
Retail stocks have taken a hit with a loss of 1.5% on Monday -- down 5.2% on the year -- one of the worst performing groups.
Best of Trading,
Director of Stock Options Made Easy
The Stock Market Bull Ride Continues
March 19, 2017
The stock market continues its’ upwards spiral, despite the fact the Fed raised rates.
Even though there was relatively muted action in stock markets Friday, the Dow, S&P 500 Index (SPX), and Nasdaq Composite (COMP) all closed higher for the week, with the COMP notching an all-time intraday high.
There was plenty of information to be considered throughout the week -- trade discussions in a meeting between President Donald Trump and German Chancellor Angela Merkel, as well as the G-20 summit of global financial leaders, a round of economic data and wavering oil prices, as well as a pull-back in bond rates. And on top of this was quadruple witching expiration occurring.
When the Fed actually raised rates on Wednesday afternoon there was surge in stock prices. The fact that the committee was comfortable with just three
hikes this year, provided a comfort zone to traders, and for those that were gambling on a more hawkish Fed there was scramble to undo their bets.