Stocks are down Wednesday and it’s more than just random premarket action — keep an eye on the bond market (TLT), which is still in a descending triangle.
We got an important piece of Federal Reserve data in the form of fourth-quarter U.S. gross domestic product, which came in a shade under expectations at 3.2% versus estimates of 3.3% and a previous reading of 3.3%.
Volatility has held steady near the lows, but what’s interesting is the lows have in fact been getting higher, so don’t be surprised to see it start rising.
We have some big earnings reports from smaller companies like Snow (SNOW), Baidu (BIDU), Salesforce CRM), TJX Companies (TJX) and more.
Keep an eye on forward-looking statements from these companies. If they’re bad, it’s bad for the economy. So Retail (XRT) is the sector to watch for the rest of this week.
While the market has been chopping sideways the past four days, XRT has been going straight up, which tells us there’s a lot of relative strength in this sector.
Then next week, we’ll see midcaps begin reporting.
I’ll cover all that and more in this morning’s “Premarket Must Watch” video!
Roger Scott
Roger Scott Trading
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P.S. You Have to See These ‘Cheap’ Options
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Sound far-fetched?
I was met with some skepticism, too, even from my publisher — that was, of course, until I presented my compelling evidence.
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