Insights

Webinar 2: Navigating the US markets, live from Chicago [Full Video]

14 May 2019  |  EDUCATION

Missed the webinar? Click below for the FULL recap. Last night, U.S. stocks and commodities tumbled after China retaliated with higher tariffs on a range of American goods. Trade war uncertainties have spooked investors and the overall sentiment of the market. So where do you go from here? Is this the start of a deeper downturn, or is it a buying opportunity? Hear what our expert has to say - Direct from Chicago! Watch the webinar to find out more!


S&P 500 Overview: S&P 500 holding potential support level

  • Index had biggest drop all year on trade war fears
  • Holding 2800 level identified last week, high from late February and all of Q4.
  • Bad news priced in, real impact of tariffs on U.S. likely minor
  • “Golden cross” pattern remains in effect on S&P 500

 

Sector Review: Strong ‘risk off’ bias

  • Global stocks hammered: Chinese Internet stocks, emerging markets.
  • Asian-exposed sectors hammered: Semiconductors, Apple (AAPL),
  • Safe-haven utilities the only gainers in last week
  • Only 4 companies Nasdaq-100 up in last week
  • Housing dropped less than most other industries
  • Pharmaceutical bloodbath worsens amid lawsuits, bankruptcy concerns

 

Economic review: Asia Pac struggles

  • Chinese trade surplus collapses in April on weak exports
  • Chinese loan growth misses as bankruptcies surge
  • Keep an eye on Chinese industrial/retail data Wednesday morning
  • Malaysia, Philippines cut rates
  • U.S. inflation readings still low
  • Takeaway: Interest rates could stay low

 

Idea to consider: IShares US Home Construction ETF (ITB)

  • Housing market has shown signs of recovery.
  • Outperforming most other industries this year.
  • Important monthly housing starts/ building permits due Thursday
  • Stands to benefit from lower interest rates

 

Idea to consider: Crown Castle (CCI)

  • Operates wireless communications towers
  • Benefits from low interest rates
  • One of 3 companies in a quasi monopoly for usable sites
  • 5G growth potential

 

Idea to consider: Honeywell (HON)

  • Blue-chip industrial with record of beating estimates
  • Limited Chinese exposure
  • Holding 2018 high

David Russell is VP of Content Strategy at TradeStation. Drawing on nearly two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial. Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them appraised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.


Risk Disclaimer: The information above is of general nature only and does not take into account your objectives, financial situation or investment needs. Prior to you make an investment decision, please make sure you carefully read and fully understand our Financial Services Guide, Terms and Conditions, Privacy Policy and other relevant documents that you can obtain from this website. Monex Securities Australia Pty Ltd (AFSL No. 363972; ABN 84 142 210 179) is the Financial services provider. Financial products trading carries risks and may not be suitable for all investors. You are strongly recommended to seek independent financial advice before making any investment decisions.

IShares US Home Construction ETF, Crown Castle, Honeywell, ,

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