Market 2017-10-23 (STX, UNG, T, GE and more)

Market is finally cooled down a little bit. All three indexes finish red.

By the past weekend, among reported earnings 70% companies beat expectation. However, the revenue growth is less than 2%. (cannot remember where I read this yesterday). JPM strategist David Kelly predicts "a slowdown in earning growth because of stronger wage growth and higher interest rates".

What might trigger selloff? The following things still matter in this bull market run (a lot of other things do not matter anymore).
1. Political tension with North Korea and Iran.
2. Tax reform failure.
3. A government shutdown in middle Dec.

Be prepared.

Winner Today

STX provides nice ER, boosting stock price 12.6%, helping WDC gain 1.8%. WDC gets some relief from Toshiba bidding failure. WDC will report earnings this Thursday AH.

UNG (+1.1%) natural gas recovers a little bit. Good news from OPEC during weekend and dropping rig counts in US indicate crude price may get into up trend. Uncertainties are still there.

Losers Today (many)

HAL (-2.5%) ER beats, but warns of slower growth.

 HAS (-8.6%) ER beats, but Q4 outlook disppoints. Takes MAT down (-3.1%). Toys market is still facing headwinds.

T dips before ER tomorrow, would like to buy if price drops below $34.

Whirlpool just reported ER, which misses both top and bottom lines. -7.7% now.

My trades Today

Initiate my position in GE @ $22.2. Analysts slash price targets in the wake of ER last Friday, GE -6.3% today.

Initiate my position in FIT @ $6.08

Double down UAL to lower average price to $59.5

Reduce COST weight from 7% to 5% AMAZON earning --- AMZN ER on Thursday. I am afraid of another shock if Amazon paints rosy picture of Whole Foods. Amazon is really good at that.

Reduce M weight from 8% to 7% to lock some profit.

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