The market wanted something out of Yellen it did not get. All the morning gains were gone by the end of the session as Yellen never took a rate hike in March off the table. Even with slim odds of a rate hike in March the market definitely needed to hear Yellen was not about to raise rates. 10 year yields fell as bonds continued their rally as negative rates around the world set in. Crude oil lost its gains ending the session lower with a 27 handle. Perhaps Thursday she will give the market some hope, but we wouldn’t hold your breathe. Price action continues to remain weak and we simply do not have the setups to have confidence in a rally. Cash is king.
Good news for Elon Musk after SCTY took a beating today TSLA was up more than 9% after reporting its latest quarterly earnings. SCTY was down more than 29%, but perhaps TSLA takes the sting out of the loss. TWTR rose 4% ahead of earnings, but reported a decline in users and the stock dropped 3%. The company has such a wide reach yet can’t produce. At least we had price to guide us and keep us far away from getting long TWTR. Earning season continues to be a coin flip for stocks and given the overall market action it is best to stay away for now.
Crude oil will likely continue to fall. It is in a severe downtrend and given the supply and demand picture it would take a large event to push prices higher. Iran is pumping oil like mad to regain its market share it lost during sanctions. At the rate everyone is trying to produce to keep money coming in we’ll need an event to slow production. Price continues to point to lower prices and we do not expect to see a turnaround any time soon.
Remain patient in this market. When there isn’t a trade to be made do not make one. Today we did not have any proper intraday setups and did not trade. Do not be a hero. Cash remains king.
