Will The S&P 500 Make All-Time New Highs In 2019???

Contrarian investing is an investment style in which investors go against prevailing market trends by selling when the crowd is are buying and vice versa. A contrarian investor believes that certain crowd behavior among investors can lead to exploitable mis-pricings in the markets.

The bull/bear ratio indicates overall investor sentiment in the market by comparing the number of bullish and bearish investors. The ratio is a contrarian indicator in that a bull/bear ratio > 1 indicates conditions are too bullish and you should take a bearish stance and a bull/bear ratio less < 1 indicates conditions are too bearish and you

Stanley Black & Decker, Another Housing Market Barometer

Stanley Black & Decker Inc. posted profit in the fourth quarter of $2.11 a share, beating analysts’ estimates a penny and  revenue in the quarter was $3.63 billion, topping forecasts of $3.62 billion, but the stock still fell double digits on Tuesday.  The stock still fell because of their dismal 2019 earnings forecast.

A week ago I talked about how Sherwin-Williams lost more than 6% after announcing earnings and how analysts will often look at the Sherwin-Williams as a barometer for health of the consumer and housing market.

Source

Stanley Black & Decker, Inc. the construction equipment maker that provides tools such as

Nikkei 225 Looking Bearish

The Nikkei 225 more
commonly called the Nikkei, is a stock market index for the Tokyo Stock
Exchange (TSE). Like the DOW in the US, the Nikkei is a price-weighted index, measures
the performance of 225 large, publicly-owned companies in Japan from a wide
array of industry sectors.

Nikkei is known best for
being in the longest bear market in modern history. On Dec. 29, 1989, the
Nikkei reached an all-time intraday high of 38,957. Three decades later, the
Nikkei’s value is still 47% below that mark.

And I don’t anticipate the Nikkei coming out of the bear market anytime soon because within the last 12 months, the Nikkei

Google Getting Into Wearables

The iPhone has been a
Godsend and a Devil for Apple as they know they must start to generate revenue
by other means.  In addition to Apple
Service, the Apple Watch is the future at Apple. 

The Apple Watch was equipped with heart rate sensor in 2015 and since then, added an electrical sensors with the capabilities to perform an electrocardiogram (ECG) and fall detection.  The Apple Watch will allow Apple to move into Healthcare, which will all them to selling more high-margin hardware and expand Apple Service. 

Wearables are becoming an increasingly important category of hardware technology for big players like Apple

Unusual Options Activity In Freeport-McMoRan

Freeport-McMoRan (NYSE: FCX) engages in the mining of mineral properties in the United States, Indonesia, Peru, and Chile. The company primarily explores for copper, gold, molybdenum, silver, and other metals, as well as oil and gas. 

After a stellar 2017, FCX fell 46% in 2018 in large part to the drop in copper amid the US-China trade war.

As a result FCX received several downgrades from Wall Street in 2018.  The last downgrade was from RBC Capital, in November to “underperform” from “sector perform” and reduced their price target on FCX from $16 to $15.

FCX is expected to announce earnings on

All Eyes On Brazil’s Bolsonaro

Brazil stocks have been rallying since Bolsonaro’s presidential victory in October last year. 

While the global equity markets tanked in the fourth quarter, the Brazil’s Bovespa index gained 11% in the final quarter of 2018.  Brazil’s economy has struggled for growth in recent years.  Brazil also has massive pension issues.  For example, Brazil’s current retirement age is 60 for men and 55 for women which has has put a strain on the system. But global investors think Bolsonaro will make the changes necessary to help and grow the country’s economy again.

The most popular Brazilian ETF, iShares MSCI Brazil, EWZ, rose

$SPX Weekly Outlook: NEUTRAL… $QQQ $IWM $DJI

US Markets have ripped higher to start the year. This is the best start to the Russell 2000 since 1987 (pun intended). We are halfway into the first month of the first quarter and the Bull is Back in Gear!

Although this was quite the V-Shaped rally that, NO ONE expected (which is exactly why it happens), we are still in a very neutral to bearish area. You can see the V-shape, panic buying, that has progressed over the past few weeks.

All of this buying to get back to HEAVY RESISTANCE (at 2680), and the DECLINING 200 Day MA at 2760.

CSX Transportation…Not Full Steam Ahead

CSX reported near double-digit top-line growth for their fourth quarter after the closing bell on Wednesday.   CSX’s volume and pricing strength led to mid- to high-single-digit revenue growth in a number of freight categories, including chemicals, automotive, forest products and coal.   However,  CSX told investors to expect low-single-digit revenue growth in 2019, a 7% decrease from 2018.

CSX is in an “unfamiliar position,” as Wednesday’s earnings report did not consist of its typical big beat and management’s tone during the conference was void of any “swagger,” Shanker said in a Thursday note.

CSX said it can’t identify any trend in its business

Sherwin-Williams and Lowes, For Better Or Worse

Shares of Sherwin-Williams tanked on Tuesday after the company warned that its earnings in 2018 came well short of guidance, citing weak sales in North American stores. 

The paint maker on Tuesday reported its preliminary results for the fourth quarter and full year 2018. Net income for 2018 is now expected to be $11.15 a share, well below previous guidance of between $13.85 and $14 a share. Shares of the lost more than 6% in Tuesday’s session.

Analysts will often look at the Sherwin-Williams as a barometer for health of the consumer and housing market.

Sherwin-Williams will continue to operate its own