“Striking Distance Of Dow at 30k, Nasdaq at 10k & S&P 500 at 4k…”

It is hard to believe that we are in the striking distance of the Dow at 30k, Nasdaq at 10k, & S&P 500 at 4k but here we are folks. Wednesday’s trading session moved the markets higher as it was inspired by an improving outlook surrounding the control of coronavirus situation, a Fed that is somewhat behaving with their position and commentary on interest rates, and a few positive reports and outlook from leading components that make up significant holdings in the markets.

The 3 majors indices all achieved new record highs today.  The S&P 500 closed at 3,379.45, +.65% as ten of 11 sectors charged forward led the energy, +1.4 and the information technology, 1.1% sectors while the consumer staples sector was the lone dissent closing off -.04%. The tech-heavy Nasdaq closed at 9,725.96, +.9%. The Dow Jones Industrial Average closed at 29,551.42, +.94%. The Russell 2000 also moved higher by +.71% ending at 1,689.38.

The FAANG’s finished in the green today. Facebook (FB) closed at $210.76/share, +1.72%, Alphabet (GOOG) closed at $1518.27/share, +.63%, Amazon (AMZN) closed at $2,160/share, +.43%, Apple (AAPL) closed at $327.2/share, +2.37% near its al-time high of $327.85 & Netflix (NFLX) closed at $373.69/share, +.71%.

The “fear gauge” Vix (TVIX) ended at $38.56/share pulling back by -9.48% and traded in $38.33 – $41.56.

Economic Reports

On Monday we did not receive any significant macroeconomic data.

On Tuesday, we received the NFIB Small Business Optimism Index Report for January which showed a move up to 104.3. The December Job Openings and Labor Turnover Survey Report confirmed that job openings slid to 6.423M.

On Wednesday, the Treasury Budget Report for January which confirmed a deficit of $32.6B. The budget deficit over the last year period is $1.063T versus $1.022T in December. The weekly MBA Mortgage Applications Index Report showed and move up by +1.1%.

Investing & Inspiration

“There are old traders and there are bold traders, but there are very few old, bold traders.”-Ed Seykota

“Let this scenario play out on its own, in its own fashion. As you watch it unfold, you will soon be grateful that you choose the peaceful path. Remember — those who live by the sword, die by the sword.”

“As long as you enjoy investing, you’ll be willing to do the homework and stay in the game.” -Jim Cramer

“I rarely think the market is right. I believe non-dividend stocks aren’t much more than baseball cards. They are worth what you can convince someone to pay for it.” -Mark Cuban

“Michael Marcus taught me one other thing that is absolutely critical: You have to be willing to make mistakes regularly; there is nothing wrong with it. Michael taught me about making your best judgment, being wrong, making your next best judgment, being wrong, making your third best judgment, and then doubling your money.” -Bruce Kovner

“The policy of being too cautious is the greatest risk of all.” -Jawaharlal Nehru

“The only true test of whether a stock is “cheap” or “high” is not its current price in relation to some former price, no matter how accustomed we may have become to that former price, but whether the company’s fundamentals are significantly more or less favorable than the current financial-community appraisal of that stock.” -Philip Fisher

“I learned to avoid trying to catch up or double up to recoup losses. I also learned that a certain amount of loss will affect your judgment, so you have to put some time between that loss and the next trade.” -Richard Dennis

“The four most dangerous words in investing are: ‘this time it’s different.” -Sir John Templeton

“Money doesn’t make you happy. I now have $50 million but I was just as happy when I had $48 million.” -Arnold Schwarzenegger

Tomorrow

Tech giant and Dow 30 component Cisco Systems, Inc. (CSCO)  reported second-quarter results for the period ended January 25, 2020, after the close today. Cisco reported second-quarter revenue of $12.0 billion a the middle of its guidance range, net income on a generally accepted accounting principles (GAAP) basis of $2.9 billion or $0.68 per share, and non-GAAP net income of $3.3 billion or $0.77 per share at the high end of the guidance range of 75 cents to 77 cents. Shares of Cisco are trading off currently at $47.85/shares.

Tomorrow’s significant economic data report schedule will include the following:

• The Consumer Price Index for January &
• The Weekly Initial and Continuing Claims Report

A few notables that many of you may own that will be reporting their earnings still this week are:

• UnderArmour (UAA)
• Nvidia Corporation (NVDA)
• PepsiCo, Inc. (PEP)
• Kraft Heinz Co (KHC)
• Alibaba Group Holding Ltd (BABA)
• Roku (ROKU)