A Glitch leads to Rotten Apple

I was happy to hear yesterday that December was just a glitch in the stock market. I suspect that when the government opens again they will start sending out checks to cover all the downside we experienced. I have also heard that December was the worst month for the S&P 500 in 10 years, so it was kind of a big glitch.

The General of the market, Apple, confirmed the glitch hit them last night as they reduced their guidance on iPhones. The angry market players did not like that and dropped the stock 10% in the after hours market. This of course brought all the Indexes lower as well. So much for the bounce since Christmas.

One potential bright spot is in the S&P 500. The fruit induced selloff did not undercut Wednesday’s low. And in the pre-market trading Thursday it is moving back higher, perhaps helped by the best ADP jobs report since February 2017. Economic data that will either back up the bearish views of a slowing economy or refute them will start to flow in now.

Mid -month the earnings cycle starts up again. Time to get your head out of Holiday mode and back into the game. The next two weeks will give many opportunities for the market to signal the next direction. I remain nearly 85% cash with short term and mid term portfolio hedges, along with some options positions for potential upside but with defined risk. What is your plan?

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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