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Home / Business / Bears can be in for a "great few weeks" as S & P 500 hits a wall

Bears can be in for a "great few weeks" as S & P 500 hits a wall



Investors left stocks parked at a polling station in front of the president's day break, as trade talk euphoria helped drive the best winning string for blue chips since late 2017 and tech stocks out of a bear market.

Can the bulls keep it up? Sour retail news, as some brushed aside as an aberration, was a blip in a strong week. Already the reason to pay attention to Walmart's strong earnings this morning, which can reassure them worried about a consumer-led recession.

And trade headlines may have something to say about further gains for stocks when Europe threatens to mix it up with potential US auto tariffs (see buzz below), and dealers in China and DC sit down in Washington to pick up where Beijing quit last week.

Our Call of the Day by Adam Kobeissi, founder and editor of The Kobeissi Letter, sees some near-time dark clouds gathering around the S&P 500 and judging by soggy action in the premarket he can be on something.

"Beginning December 24 in the S&P 500 at 2,346, the story has been that the world economy has slowed down, the Fed is becoming more deaf and a US-China trade agreement is imminent," which all contributed to the index rally 430 points from December 24 low of 346, Kobeissi said.

But an excessive dovish Fed is now fully baked in stocks, along with a trade deal – so much so that stocks can fall, he says. Others, like MarketWatch's Mark Hulbert, have announced a market that has gone from extreme pessimism to extreme optimism.

See: Trade agreement blues? Some say that shares are happier when a trade deficit worsens

Here is where Kobeissi says we are now – S & P had a key level of 2,700 last week and recovered 2,750 for the first time since December 3, but sees resistance at 2,790 and the large 2800 level.

"We look forward to our belief that the upside is limited, and the purchase of stocks now presents a very unfavorable risk factor, as expected returns have shrunk with recent bullishness," Kobeissi said. See S & P 500 to test 2,750 and 2,700 as a point where stocks can move further south.

"We maintain our goal of 2,550 at the S&P 500 and believe that short positions in stocks have been set for a few weeks," he said.

The Market

The Dow

DJIA, -0.03%

S & P 500

SPX, -0.02%

and Nasdaq

COMP, + 0.04%

is off to a flat start. Read more in Market Snapshot

Gold

GCJ9, + 1.12%

climbs while the dollar

DXY, -0.02%

is stable and raw

CLJ9, + 0.29%

inch up.

Europe shares

SXXP, -0.44%

is mostly down the board, and the shares were mixed in Asia, with a flat Nikkei

NIK, + 0.10%

.

Map

Back in the early 90s, a degree raised $ 12,000 in student loan debt for this reporter. It felt like a big burden at that time, took years to pay off. Keep our beer, say the millennia, that brings us to our chart of the day.

It comes from the analyst at Real Investment Advice, who has listed recent data showing US student loan crimes hit a record $ 166.4 billion in the last quarter of 2018. Here is a chart form:


"One The main reason for the student loan bubble is the high price of a college education (it is actually a self-reinforcing relationship – the student loan bubble also provides training in teaching). On average, inflation-adjusted private education, space and government have almost tripled since the early 1980s, Colombo said. its name to send out flares in the years leading up to the US financial crisis in the United States

Read: Watchdog slams Department of Education Student Loan Overview

The buzz

Walmart

WMT, + 3.52%

shares are higher as sales and earnings in the retail giant's forecasts, the promise of toys and groceries.

HSBC

HSBC, -4.02%

Europe's largest bank, tumbler for missing forecasts, owing to both Brexit and trading tensions. Meanwhile, Honda

7267, + 0.37%

says it will close its mill in Swindon, U.K., which employs thousands, but says it has nothing to do with Brexit.

While waiting to hear if the US is going to cut auto import tariffs, the EU turned back on the president's day with a warning that it would strike back in a "quick and adequate way". It's like the White House says the trade negotiations in the US and China should start today. China itself reported some blowing automatic sales figures over the long weekend.

California and 15 other states have filed a lawsuit to stop POTUS's readiness statement, accusing him of "blatant respect for power separation."

Tesla's

TSLA, + 0.78%

site no longer mentions a cheaper $ 35,000 model 3, and fans are panicking.

Social media do not miss a battle after SeaWorld

SEAS, + 1.31%

gondola ride breaks down, leaving more than a dozen people to be rescued.

A housing builder's index is on print for later.

The quote

"We began the political revolution in the 2016 campaign, and now it's time to move that revolution forward." – It was Vermont Sen. Bernie Sanders, who says he is ready to take another shot at the White House, when he launched his 2020 presidential campaign. And POTUS looks up its re-election team, with a trio of new rents, including in media connections and tweeting about why his victory paid off.

And: Bernie Sanders says it is time for the super-rich to "make the moral right"

At the same time, the Democratic President, Hopeful Elizabeth Warren, is planning child welfare for all and wants the rich to pay for it.

Random Reading

Trump tells Venezuelan dictator Nicolas Maduro to give up, who went down about as much as you might expect

Fashion legend Karl Lagerfeld, dead on 85

Drunken JetBlue passenger did not & # 39; I don't want to sit next to a 3 year old.

Winter is back for more than 200 million Americans

Phone calls are extortionate – for inmates

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