Market Lab Report - Premarket Pulse 1/27/16
Major averages rose on slightly higher volume with the narrowest of the major indexes, the Dow Jones Industrials, posting a so-called follow-through day. Oil bounced but is trading lower today. Apple (AAPL) is also trading lower in premarket trading after reporting the sales of its iPhone grew at the slowest pace since introducing the iPhone in 2007. AAPL consequently is projecting is quarterly revenues to be well below estimates which, if realized, would mark its worst quarterly revenue decline since 2001.
Both oil and AAPL are putting pressure on futures which are currently off almost half a percent.
The Fed concludes its two days of talks today at 2 pm EST when it will release a policy statement. The question will be whether they stay their course on additional rate hikes this year, proclaiming their confidence in the economic recovery, or whether they will revert to their dovish stance of gradual rate hikes as needed by acknowledging the recent market turmoil at home and abroad is cause for concern. CME FedWatch puts the odds of a rate hike in March at 34% and in April at 42%. Gil Morales puts the odds of the Fed hiking rates at 0%, but how the market reacts remains to be seen. Indeed, should the market correction worsen, Dr K puts the odds of the Fed launching QE4 at 100%.
This information is provided by Virtue of Selfish Investing, LLC (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing, LLC. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2016 Virtue of Selfish Investing, LLC. All rights reserved.