5 Stocks That May Sink The Market, Do Bonds Have A Secret Message

US Trading

  • S&P 500 Futures are pointing to a modest decline of 4 points at 7:30 AM
  • US 10-Year Treasury: 2.66%
  • Oil: $55.55
  • VIX: 14,94
  • Dollar Index: 96.31

International Trading:

  • Japan Nikkei: -0.37%
  • China Shanghai: -0.67%
  • Hong Kong HSI: -0.65%
  • Singapore STI: -0.33%
  • South Korea KOSPI: -0.27%
  • Australia ASX: -0.94%
  • UK FTSE: -1.2%
  • German DAX: -0.12%

Global Growth Proxies:

  • Silver: -0.16%
  • Platinum: -0.19%
  • Copper: +0.36%

Key Headlines

FX

The Pound looks like is nearing a big break out versus the dollar. Could be on its way to 1.42.

gbpsud

Rates

bonds,

10-y

US 10 Yr- German 10Yr

spread

German 10-year

german 10year

What are the bond markets trying to tell us?

Slowing Growth? No! See Commodities Export Stock Markets

Slower Inflation? Nah!

Most Likely? US bonds are still very attractive compared to global rates and the spreads for US bonds got too wide and are now reverting to the mean.  Seems like a very highly likely.

Lower rates are good for PE multiple expansion

S&P 500 (SPY)

The S&P 500 is pointing to a slightly lower opening today certainly nothing horrible. There is a mild level of support around the 2,785 region. At this point, there is nothing to show a down day is the start of anything more severe. I don’t expect today’s sell-off to last. I would not be surprised to see the markets higher by days end.

S&P 500, spy

Caterpillar (CAT)

Caterpillar was downgraded to a Sell with a $125 price target at UBS today. The stock is trading lower this morning as a result. The downside in the stock now looks relatively limited, with a support level of around $132.

cat

Home Depot (HD)

Home Depot is trading slightly lower after it reported weaker than expected fourth quarter results. Support for the stock is now around $182, and a drop below that level opens the door to a steeper decline. Overall the trends in the stock seem healthy, and the outlook Home Depot gave for 2019 sounds strong. I’d be surprised if the stock breaks support.

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Disclosure: Michael Kramer and the Clients of Mott Capital Own Tesla

Disclaimer: This article is my opinion and expresses my views. Those views can change at a moment's notice when the market ...

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