JV Research LLC. Tuesday, March 20, 2018
Last week the markets traded lower across the board, but the damage was minimal mainly due to strong
action in the Tech sector and a late in the week rebound in the Big Cap names in the DOW, so there was
a reasonable chance of the averages turning around this week. Unfortunately over the weekend, Facebook,
got itself into some serious trouble, over the possible hacking of 50 million Facebook users information and that
set off a tidal wave of selling, not only in FB and the rest of the Social Media companies, but the entire Equity
market went down the drain with them. Now lately, the markets have not been in a good mood, even with a strong
Economy, Low Rates and benign Inflation, so when you have a Major Leadership Group like the Tech’s get
slammed and no other group steps up to offset the selling, the markets are in trouble.
Technically, for the 2nd week in a row, the averages were in position to start the new week on a positive note
and once again, the markets got blasted on Monday, setting the averages up for yet another tough week.
This week, make make last week look good, because yesterday’s sell-off was brutal, with losers outpacing
winners by huge 4/1 margin and the fact that the other Leadership groups also sold off hard, means that the
markets are on their own and unless there is some news to turn the markets around, we may be in for a very
bad week for Equities.
Overnight, the Facebook fiasco was not taken so badly and the Global trading was mixed and in early trading
today, the DOW is off slightly, the Yield on the 10 Yr Treasury is 2.86% , the Dollar is higher and Commodities
are mixed with Gold slightly lower, but Oil is testing Resistance at $63.00. Lately the Oil stocks have been selling
off, while Oil, the Commodity has been trading higher, sooner or later this DIVERGENCE has to be closed, by
either Crude coming down or Oil stocks trading higher, so find a few Oil Patch names and pay attention in
case they turn around.
We have no data today, but the FOMC Rate Decision is tomorrow and at some point this week the Trump
Administration is expected to announce Tariffs on Chinese goods, which could set off another round of selling,
so buckle up.
I am working from 80 Broad and can be reached at 212 -417-8062
Today’s Early Markets
DOW Futures— up 30.00 London – up 13.58
S&P – up 100 DAX – up 37.76
GOLD—$1320 Apr Nikkei — down 99.89
OIL— $62.90 Apr HangSeng — up 36.65
DOW RESISTANCE 24,850 S&P RESISTANCE 2730
DOW SUPPORT: 24,500 S&P SUPPORT: 2700
$NASDAQ RESISTANCE 7400
$NASDAQ SUPPORT 7300