Futures Up This Morning!

7.39 a.m. CST February 13, 2017

Good Morning!  Futures are up significantly this morning, and rising over the past hour, S & P 500 4.5; Dow 50; Nasdaq 7.75.

Charlotte and I returned late last week from a fantastic Plan Your Path event in Maui with 52 great TRADEway students and staff.  Forty clients received their 5 yr, month-by-month business plans to help guide them as they turn their stock trading into a business.  They also leaned new skills to sharpen their trading, as well as new strategies only taught there, each day.  Hawaii is perhaps the closest thing to paradise on earth, and it is a great place to contemplate owning your own business, creating generational wealth through the idea of the family business, and time freedom, among other powerful and life-changing concepts.  It was truly an amazing week.  It is always good to get back home to Texas, however, and back on a regular schedule.  

The world markets are up also.  Trumps announcement to massively cut corporate and individual taxes is driving this market.  Chinese trade data was improving, U.S earnings have been solid so far, U.S. bond yields are up, copper is rising, and oil was up Friday with OPEC meeting 90% of its production cut promises.

Federal Reserve board governor Daniel Tarullo said he would resign from the Fed, leaving the central bank around April 5. This now creates three openings at the Fed for the Trump administration to fill.  It is interesting that Tarullo's responsibility was oversight of financial regulation.  Trump will now be able to directly affect the over-regulation of the financial markets and banks.

There is some insider selling going on but that is normal, usually, because it is a major way company managers are compensated, and they sell to raise cash for family expenses and toys they wish to purchase.  The idea that stocks are overpriced is a matter of opinion, based upon speculation as to who much companies can grow due to Reagan-like tax cuts that Trump will most certainly bring soon.  With these cuts, stocks may actually be underpriced.

Market tone is warm to hot this morning.  The S & P 500 closed slightly ABOVE our resistance line on Friday on lower volume.  As you know, this is not a great place to initiate mid to long-term "up" plays because the market will retrace one of these days, back down toward the support line.  It is at THAT position that potential for great trades begins again.  I would suggest being careful about new up plays right now, and perhaps even look for potential quick put plays on the retracement (when you SEE it happening, not based upon guessing when it will happen). 

 

Have a great day!

 

News:

 

Monday

 

GLOBAL MARKETS-"Trump trades" on boost to economic growth come back with a bang

By Jamie McGeever

Reuters

02/13/17

 

https://finance.yahoo.com/news/global-markets-trump-trades-boost-092139565.html

 

LONDON, Feb 13 (Reuters) - World stocks and bond yields rose on Monday, lifted by a re-emergence of so-called "Trump trades" as investors bet that the U.S. president's tax reform plans will boost economic growth and corporate profits.

 

Following on from Friday's record high closes on Wall Street, Asian stocks rallied to 1-1/2-year peaks and European stocks rose for the fifth consecutive session on Monday, their longest winning stretch for two months.

 

Investors were also comforted by the two-day U.S.-Japan summit held over the weekend apparently having ended smoothly without President Donald Trump talking tough on trade, currency and security issues.

 

Comments from Trump on Thursday that he plans to announce what he said would be the most ambitious tax reform plan since the Reagan era in the next few weeks rekindled hopes for big tax cuts.

 

Economic data from major economies has also been upbeat, including Friday'sChinese trade figures, while U.S. corporate earnings have been also solid so far.

 

In the weekend meeting with Japanese Prime Minister Shinzo Abe, Trump held off from repeating harsh rhetoric that accused Japan of taking advantage of U.S. security aid, stealing American jobs and "playing money markets." Nor were currency issues discussed.

 

The euro has been dogged by fears about a strong showing for French far-right leader Marine Le Pen ahead of a presidential election.

 

Ten-year U.S. Treasury yields rose 3 basis points to 2.44 percent.

In commodities, copper hit its highest levels since May 2015 after shipments were shut off from the world's two biggest copper mines - due to a strike in Chile and an export's ban by Indonesia.

 

It last traded at $6,129 per tonne, up 0.7 percent on the day. On Friday it jumped more than 4 percent, its biggest one-day rise in almost four years.

Oil prices dipped slightly after strong gains on Friday on reports that OPEC members delivered more than 90 percent of the output cuts they pledged in a landmark deal that took effect in January.

 

International benchmark Brent crude futures fell 0.8 percent to $56.25 per barrel.

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Inflation and retail sales - What you need to know for the week ahead

By Myles Udland

Yahoo Finanace

2/12/17

 

https://finance.yahoo.com/news/inflation-and-retail-sales-what-you-need-to-know-for-the-week-ahead-205042225.html

 

On Friday afternoon, Federal Reserve board governor Daniel Tarullo said he would resign from the Fed, leaving the central bank on or around April 5. This now creates three openings at the Fed for the Trump administration to fill.

Tarullo, we'd note, was the Fed governor in charge of overseeing financial regulation. A major part of the post-election rally in stocks was centered on the financial sector, as a partial or full roll-back of the Dodd-Frank regulations put in place after the financial crisis was seen as a positive for the sector.

The departure of Tarullo from the Fed board now not only allows the Trump administration to put a major imprint on the Federal Reserve, but gives added juice to an investing thesis predicated on decreased regulation in the financial sector.

 

Earlier in the week, stocks rallied after Trump said that his administration would, in the next couple weeks, be announcing something that is "phenomenal in terms of tax." And now, maybe something phenomenal on regulation, too.

 

Looking quickly to this week, the earnings calendar will slow some, though we will get headline reports from T-Mobile (TMUS), Molson Coors (TAP), LendingClub (LC), Hilton Worldwide (HLT), PepsiCo (PEP), Cisco (CSCO), CBS (CBS), Kraft Heinz (KHC), and Deere (DE).

 

On the economic data side, the week's reports will be the monthly updates on consumer prices and retail sales, which are both due out on Wednesday.

Investors will also hear from Fed Chair Janet Yellen on Tuesday and Wednesday as she'll deliver he bi-annual testimony before Congress and face questions from lawmakers.

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Massive Technology Trades Highlight Insider Selling: Apple, Microsoft, Google, Texas Instruments and More

By Lee Jackson

24/7 Wall Street

2/11/17

 

Once again last week the market was hitting all-time highs, and once again insiders were selling shares at a furious pace. Who can blame them? While the outlook for 2017 is bright, and President Trump is signaling that positives like tax cuts are on the horizon, the bottom line is stock prices are sky-high and insiders know it.

We cover insider selling every week at 24/7 Wall St., and we like to remind readers that just because an individual or 10% institutional owner sells stock, that is no cause for immediate alarm. Many top executives, and even directors, are compensated with stock and often sell just to diversify portfolios or purchase other assets.

 

Here are companies that reported notable insider selling this past week.

Hedge Fund Value Act was a huge technology seller this past week. It parted with an 11 million share block of Microsoft Corp. (MSFT).

 

One of the top executives at Alphabet Inc. (GOOGL) was selling stock this past week.

 

A co-chief executive officer of American Financial Group Inc. (AFG), Carl Linder, sold a total of 200,000 shares of the property and casualty insurance products provider.

 

Apple Inc. (AAPL) is another mega-cap tech leader that had an executive selling shares last week. A senior vice president at the company shed a block of 75,000 shares at between $128.01 and $128.59 apiece. The total for the sale was posted at $10 million.

 

The chief operating officer at Texas Instruments Inc. (TXN), Brian Crutcher, was another tech executive surrendering shares last week. He sold a total of 42,550 shares of the resurgent old-school chip company at prices between $76.21 and $76.32. The total for his sale was set at $3 million.

 

These companies also reported insider selling last week: BlackRock Inc. (BLK), Boston Scientific Corp. (BSX), Leggett & Platt Inc. (LEG), Vector Group Ltd. (VGR) and Western Alliance Bancorp. (WAL).

 

The insider selling volume has dwarfed the insider buying volume for some time, and last week was no exception. While it is very understandable, given the huge run in the markets, it also could be a warning sign for investors.

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Ten stocks driving the Trump rally and whether they can keep it going

Mike Sunnucks

Phoenix Business Journal

2/12/17

 

http://www.bizjournals.com/phoenix/news/2017/02/12/ten-stocks-driving-the-trump-rally-and-whether.html?ana=yahoo&yptr=yahoo

 

Ten stocks driving the Trump rally and whether they can keep it going

Here are 10 stocks that have helped drive the post-election rally and propelled the Dow Jones Industrial Average (DJI) past 20,000 as well as the Dow, Nasdaq and S&P 500 to record highs Friday.

 

Some of them - such as Goldman Sachs (NYSE: GS) and JPMorgan Chase (NYSE: JPM) have been boosted by market expectations from Donald Trump's promises of tax cuts and infrastructure spending and moves to lift banking regulations.

 

Others - such as Apple Inc. (Nasdaq: AAPL), Visa Inc. (NYSE: V) and Tempe-based Insight Enterprises (Nasdaq: NSIT) - moved up on strong earnings.

 

The question for all them is whether they can keep rising or will run into profit taking, sell offs or Trump tensions over trade and immigration.

 

1. Apple Inc.

2. Amazon.com Inc.

3. Goldman Sachs

4. JPMorgan Chase & Co.

5. Freeport-McMoRan Inc.

6. Insight Enterprises

7. Visa Inc.

8. American Express

9. Boeing (NYSE: BA)

10. Caterpillar

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Sincerely,
David Mitchell
Founder, C.E.O.

TRADEway

 

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