Stock markets closed flat on Thu May 4 2017 as investors await the unemployment report for April, due out on Friday May 5 2017 before markets open. As well investors are nervous ahead of France’s Presidential election. Even the news of a new health care bill being passed today and comments from President Trump on Tax Reform being the next hurdle on the agenda to overcome, failed to move markets at all.
The S&P closed up just 1.39 points and the NASDAQ closed higher by 2.79 points.
SPX Close May 4 2017 – Initial Technical Analysis
A quick look at the market from a technical aspect at the close. On April 19 we got a short term when the 21 day moving average fell below the 50 day. That sell signal was confirmed on April 20.
While the 21 day moving average is moving back to try to move over the 50 day and negate the sell signal, the Lower Bollinger Band is moving down to the 100 day which if it crosses below it will give a second sell signal. If the second sell signal comes at a time when the 21 day has not moved above the 50 day it will be a stronger sell signal.
Meanwhile momentum is continuing to remain as strong as we saw back in March which is a good sign for the bulls. More on the technical indicators and market breadth will be posted this evening along with buy or sell signals for the market direction.
SPX close Thu May 4 2017
New Email Newsletter
As many investors who signed up for email know, our email servers have been overwhelmed in the past couple of weeks and emails are now only sporadically being able to contact those who signed up for emails. We have worked for quite a few days trying to resolve the problem. We are moving off the local server and our newsletter will be handled by an outside agency. With numerous changes and the investing tools being introduced, the number of members and subscribers continues to grow and that means I require more time to focus on content and less on solving these types of issues. I have a tech support contract as members know, but they are reaching the point where they too are a bit overwhelmed at times. Therefore having the newsletter handled by an agency will free up a lot of time to focus on content.
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Summary of Articles From Today
Spy ETF Trade Ahead of April Jobs Report
Of interest today is a Spy ETF trade which I have done monthly for more than 4 years ahead of the unemployment report. This trade has rarely been unsuccessful but with the market trending strongly sideways, tomorrow may not see the movement in stocks I am hoping for. This article discusses in details the trade. I suggest for members interested in this strategy that they print out or bookmark the article. Remember, you can use the bookmark feature of your membership which will save your bookmarks with your members account. That way in June when we get the May unemployment report you can review the outline of the trade to assist in making your own trade. Here is the link to that article.
Growing Cash Returns While Waiting For Investing Opportunities
I get a large number of emails monthly about the cash portion of my portfolio and how I handle it each year. This article discusses a trade done today which explains one of the many ways I work toward a 4% to 6% annual return on my cash while waiting for other investing opportunities.
Tomorrow’s Trade for May 4 2017
I was a bit late in getting the Tomorrow’s Trade up for Thursday but it was posted around 10:30. It contains 4 trade ideas. I was partly filled by the time of getting the trade posted. Tonight I will have the Tomorrow’s Trade up before the markets open on Friday.
Trades For Friday’s Watch List
There were three trades done in the morning which investors might want to review and then consider for their watch list for Friday or even possibly Monday. Here is the link to that article. I received a number of emails from members wondering about one of the stocks picked because of a downgrade in the stock after earnings were released. Part of the reason for the trade was the high put premiums caused by the downgrades, which I think will not amount too much. The article explains the outlook for the stock and why I am looking forward to trading it.
Trades Ahead Of Earnings May 4 2017
There were a couple of trades done ahead of earnings which make for an interesting review. I think both of these trades will end up doing well. Here is the link to that article.
Super Charge Buy-Write Strategy Trades May 4 2017
These trades are always worth a look to understand the process being used to both protect the capital being used as well as the profit being generated. The most important aspect of this trade is keeping them extremely short, possibly just a week at most and focusing on structuring the trade to the point where the capital in use has a safety net that should be strong enough to hold until the time period of the trade ends. Here is the link to that article.
Ideas For Friday May 5 2017
One area that I will be looking at with be the healthcare sector now that a new healthcare bill is being prepared for the Senate. With the Republicans holding both Houses the chance of this bill failing in the Senate is probably small. That means there are bound to be some trades opening on Friday in that sector.
Cash Portfolio
Among that sector will be another Cash Portfolio trade as there is one stock in particular that I have been picking up half a percent weekly for a the past 14 months, on some of my cash.
Jobs Numbers
Depending on the outcome of the April jobs numbers, a stronger than expected number could keep the Fed on track for a rate hike in June. That might unsettle the markets but it could also assist the financial sector. FullyInformed Members know which financial stocks I am following and trading in. There could be some trades tomorrow. Don’t be surprised if the financial stocks shoot higher on Friday is the jobs numbers are stronger than anticipated.
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