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Stock Market Today: May 13th - 17th, 2019

Discussion in 'Stock Market Today' started by bigbear0083, May 11, 2019.

  1. bigbear0083

    bigbear0083 Content Manager
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    Pullbacks Happen

    As was noted yesterday, the recent bout of volatility has caught many investors off guard. However, we’ve been saying since late March that some type of normal correction could happen, and we’ve taken a more cautious stance.

    This was one of the best starts to a year ever for equities, which historically has led to modest returns the next six months, with an above average chance of a large correction.

    [​IMG]

    The S&P 500 Index fell nearly 5% before bouncing back yesterday. Here’s the catch: 5% pullbacks are actually perfectly normal parts of investing. “After a 25% bounce since the lows of December and a near 5% decline, it might feel scary and uncomfortable to investors, but it is important to remember that pullbacks are part of investing,” explained LPL Senior Market Strategist Ryan Detrick. “Trees don’t grow forever, and neither do bull runs. A break is usually needed before the eventual resumption of higher returns.”

    As our LPL Chart of the Day shows, there has been an average of more than three separate 5% declines for the S&P 500 per year going back to 1990. Given there hasn’t been a 5% pullback yet this year, we think the odds are quite strong that we see multiple 5% drops the rest of this year as the economic cycle ages and volatility picks up.

    [​IMG]
     
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  2. bigbear0083

    bigbear0083 Content Manager
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  3. AverageJoesTrades

    AverageJoesTrades Well-Known Member

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    I will be watching Oil very closely today. Looks to be breaking out to the upside from some consolidation.

    DGAZ also might trigger by tomorrow if it follows through.
     
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  4. Jrich

    Jrich Well-Known Member

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    CSCO likes the ban on Huawei... 5% pop this morning:cool:
     
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  5. StockJock-e

    StockJock-e Brew Master
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    Upside to the China trade war exists!
     
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  6. AverageJoesTrades

    AverageJoesTrades Well-Known Member

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    10,000 Option Block purchase on SNAP - 5/31 $11 CALLS bought at 10:10 this morning at the ask of .59. OI was only 2,344 so this is a new 1/2 million dollar bet on SNAP.

    Late to the party on this one but it might be a runner.
     
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  7. stock1234

    stock1234 2017 Stockaholics Contest Winner

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    After the rally for the last 3 days, almost feel like the selloff on Monday never has happened :p
     
    #67 stock1234, May 16, 2019
    Last edited: May 16, 2019
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  8. bigbear0083

    bigbear0083 Content Manager
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    a little late to post this in here but those were some nice beats across the boards on the econ. reports this AM.

    [​IMG]
     
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  9. bigbear0083

    bigbear0083 Content Manager
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    Health Care and Technology Continue to Repel Each Other
    Thu, May 16, 2019

    We've been highlighting the inverse patterns of the Health Care and Technology sectors for several weeks now, but in looking at their updated relative strength charts, it continues to amaze us how the two sectors couldn't be more opposite. Just when Health Care's relative strength versus the S&P 500 peaked late last year, the Technology sector bottomed and started to outperform. That trend continued nearly uninterrupted right into late April when Technology started to falter and Health Care outperformed. Ever since Monday, though, we've started to see early signs of the trend reversing again as Tech has outperformed the last couple of days and Health Care has lagged. While no market relationships last forever, the predominant pattern between the two now remains - Tech's gain is Health Care's pain.

    [​IMG]
     
  10. stock1234

    stock1234 2017 Stockaholics Contest Winner

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    Looks like semi stocks are the losers of the Huawei ban, a lot of them down big today. :eek:
     
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  11. stock1234

    stock1234 2017 Stockaholics Contest Winner

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    Looks like a beat across the board :eek: We will see if the trade war will affect the economy later on, but for now the market should like the solid economy and low interest rate environment :D
     
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  12. bigbear0083

    bigbear0083 Content Manager
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    whelp, this may is off to a rough start, if we can't make back the -3% + in these next 2 weeks to end the month, then this will snap the string of 6 in a row may's that have ended in the green. there's still time haha :p

    [​IMG]
     
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  13. OldFart

    OldFart Well-Known Member

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    Maybe it's time for a little correction?....

    We'll have to ask @StockJock-e , since he gets the Wallstreet whale reports...I only get the shrimp reports and they're always wrong..lol
     
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  14. bigbear0083

    bigbear0083 Content Manager
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  15. OldFart

    OldFart Well-Known Member

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  16. AverageJoesTrades

    AverageJoesTrades Well-Known Member

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    I will try and get in at .59 this morning on the dip opportunity
     
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  17. AverageJoesTrades

    AverageJoesTrades Well-Known Member

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    Filled at .53 @ 9:30 - 17 contracts.
     
  18. T0rm3nted

    T0rm3nted Moderator
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  19. OldFart

    OldFart Well-Known Member

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    exactly...but that was a "source", and today it was released by the White House...let's see if the markets keep buying it.
    Looks like they sold off the initial market orders to buy.
     
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  20. AverageJoesTrades

    AverageJoesTrades Well-Known Member

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    Just keep buying these dips fellas.
     
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