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6 Key Indicators To Watch In The Stock Market For Monday, April 9
Trading in the stock market on Monday, April 9 will be extremely important, and I’m going to be watching a few things before the stock market even opens Monday morning.
First I’m watching how Asia trades, most notably Shanghai. The market in China will reopen again on Monday for the first time since April 4, and it should be interesting to see if the markets in China respond the same way our markets have reacted to the increasing trade tensions.
I’m also going to be watching the yen and euro, and see which way the dollar goes. One would think the dollar would weaken if the FX market is foretelling of US economic slowdown or a potential trade war.. To this point, we have not seen anything new develop in the dollar trade.
In the morning, starting around 6 am, I’m going to be watching the S&P 500 futures, but not for the price, but for the mystery buyer that likes to come and buy the S&P futures in a big way around 5 to 7 am. These volume spikes have predicted the lows in the stock well in the past; my hunch is that this trader returns if the price is right.
The VIX will also be important to watch, 25.5 has been a clear top, and a rise above 25.5 is a bad indicator for the direction of the S&P 500.
The banks report results this week, and investors will be looking to the banks for a sense of direction going into those results.
Apple, Alphabet, Amazon, Microsoft, and Facebook are the most important stocks in the S&P 500, and let’s face where they go is going to primarily determine where the S&P 500 and the Nasdaq 100 go. On Friday and Saturday’s write-up, I gave the levels to watch.
Finally, 2,550 on the S&P 500 will be very important, a retest in the early morning would be ideal, followed by a rebound and buying frenzy in the late afternoon would give more confidence that we aren’t heading lower. But should 2,550 break a retest of the February lows is likely, and a break below the February lows may open the floodgates.
Good Luck this week, we are all going to need.
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Michael Kramer and Clients of Mott capital own shares of GOOGL
Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future.
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