Market 2017-12-13 (Tax Reform, Gold, and more)
Yesterday, Doug Jones (Dem) won the special Senate election in Alabama. GOP still holds 51-49 over Dem. What happens next? Doug Jones need to be certified in the week after Xmas. GOP has to push Tax Bill before that. We will see.
Fed hikes rate by 25 basic points to 1.25%-1.5%, the 3rd this year. Another 3 hikes are expected next year.
Fed revised 2018 GDP growth to 2.5% from 2.1% with considering the expected tax changes and fiscal stimulus into their calculations.
Yellen also addresses Bitcoin: it's got a very small role in the payments system, and is highly speculative. The Fed doesn't really have a regulatory role at this point. Some discussions are taking place at central banks about the adoption of digital currency, but it's not something the Fed is seriously considering.
Nevertheless, Dow Jones makes another record. For stocks, the ones jumped the most yesterday retreat, the ones got slammed yesterday go north.
GG +6%, FCX +4.1%, NEM +3.4%, as miner enjoy the rally of Gold today (Gold +1.33% to $1,258.20).
LIT +1.4%. GO batteries go.
JD +5.8%. given 'Buy' by Stifel with $48 PT. BABA +1%.
CAT +3.6%, NKE +3.4%. I am still confused why blue chips rally more than small-caps recently, which should benefit more than large-caps from Tax Reform.
WDC +2.3%. As it settles with Toshiba with 'happy ending', I expect the price will go north towards $100 soon.
QD +6%. It is now traded in a narrow range, good candidate for ultra-short-term trades.
Banks are down today, give back some of yesterday's gain. CMCSA also -2.4%. Redfin -9.8%
FOX -3.6%. Disney-Fox deal is expected to $60B, lower than the highest estimate as $69B.
Sold 30% GILD @ $77
Sold QD @ $14.2 (bought @ $13.2 yesterday)
Sold CL @ $73.6
Double down on SQ, bought @ $36.4
Fed hikes rate by 25 basic points to 1.25%-1.5%, the 3rd this year. Another 3 hikes are expected next year.
Fed revised 2018 GDP growth to 2.5% from 2.1% with considering the expected tax changes and fiscal stimulus into their calculations.
Yellen also addresses Bitcoin: it's got a very small role in the payments system, and is highly speculative. The Fed doesn't really have a regulatory role at this point. Some discussions are taking place at central banks about the adoption of digital currency, but it's not something the Fed is seriously considering.
Nevertheless, Dow Jones makes another record. For stocks, the ones jumped the most yesterday retreat, the ones got slammed yesterday go north.
Winners
MAT +6.8%, bulls hit back, HAS +3.8%. Toy makers are excited about Star Wars (tomorrow night!).GG +6%, FCX +4.1%, NEM +3.4%, as miner enjoy the rally of Gold today (Gold +1.33% to $1,258.20).
LIT +1.4%. GO batteries go.
JD +5.8%. given 'Buy' by Stifel with $48 PT. BABA +1%.
CAT +3.6%, NKE +3.4%. I am still confused why blue chips rally more than small-caps recently, which should benefit more than large-caps from Tax Reform.
WDC +2.3%. As it settles with Toshiba with 'happy ending', I expect the price will go north towards $100 soon.
QD +6%. It is now traded in a narrow range, good candidate for ultra-short-term trades.
Losers
SQ -5%, NVDA -2.4%, IBM -1.8%.Banks are down today, give back some of yesterday's gain. CMCSA also -2.4%. Redfin -9.8%
FOX -3.6%. Disney-Fox deal is expected to $60B, lower than the highest estimate as $69B.
My trades Today
Sold 30% GILD @ $77Sold QD @ $14.2 (bought @ $13.2 yesterday)
Sold CL @ $73.6
Double down on SQ, bought @ $36.4
do you think SQ drop because of yearend tax purpose selling?
ReplyDeleteYes, I think it is possible. The big drop was also possible related to the drop of LC, both of them are in small loan business. However, SQ is in much better position than LC.
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