Market On Open - Friday 2 February

Seasick? You should be!

DISCLAIMER: This note is intended for US recipients only and, in particular, is not directed at, nor intended to be relied upon by any UK recipients. Any information or analysis in this note is not an offer to sell or the solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice and nor should it be relied upon to make investment decisions. Cestrian Capital Research, Inc., its employees, agents or affiliates, including the author of this note, or related persons, may have a position in any stocks, security, or financial instrument referenced in this note. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice. Companies referenced in this note or their employees or affiliates may be customers of Cestrian Capital Research, Inc. Cestrian Capital Research, Inc. values both its independence and transparency and does not believe that this presents a material potential conflict of interest or impacts the content of its research or publications.

Pass The Sick Bucket

So. Let’s recap what has happened over the year that was this week. Make that the last three days.

Wednesday, Chairman Powell said, more or less, lower but not yet. The market dumped because it only heard “not yet” and ignored the “lower".

Thursday, the market checked its notes, noticed the “lower” part, figured it could wait, and mooned. It was up quite a lot anyway and then META and AMZN blew the lights out which just added a speedball to the existing dopamine cocktail the market was halfway through snorting.

Friday - and it’s only a little after 9am Eastern still! - a blowout jobs print has sent skittish bulls scurrying. Whether this is a fundamental reset of expectations or just a collywobble, who knows, but it was enough to send this investor darting to the “hedge” button in the S&P, Nasdaq and the SOX. I also sold quick-smart a handful of ETFs I had bought on the rate-cut theme, being FAS (3x long financials), XLU (utilities) and XLRE (real estate).

As always, price will tell us where price is headed. Today’s close will be important as there has been a wall of news to digest all week - earnings, FOMC, NFP.

OK. Now onto our usual charts. Paying members of Inner Circle, scroll down for our long- and short-term take on the S&P500, the Nasdaq-100, the Dow Jones 30 and the Russell 2000 - including the regular ETFs, the futures, the 3x leveraged ETFs and then finishing with a take on sector ETFs in semiconductor, tech, and the Fangs.

(Not a paying member? Sign up right here. If you’re not sure about committing, just take the monthly. If you like it and want to take an annual, we’ll deduct that first month’s fee so you’re not out of pocket. If you hate it, you’re down only $299).

Note - to open full-page versions of these charts, just click on the chart headings, which are hyperlinks.