First Trade For 2017

December 29, 2016 1:12PM CST

The global stock markets continue to appear as though they are running out of steam at year's close.  We had a weaker than expected reading on the US pending home sales, which may have been the catalyst for the turnaround in sentiment. It seems that thin post-holiday markets may have exaggerated the impact of US pending home sales.  Traders need to be cautious coming into 2017 in regards to the stock market. 

There’s no direct number or data that looks to ruffle the markets, but keep in mind that January is one of the weakest months of the year for the stock market.  A new administration and cabinet in the US will show which policies will take precidence. Polices are what drive certain sectors of the stock market. Regardless of political changes or a Christmas rally, we should see January start out with an early jump that could be a good selling opportunity for traders. 

A few other issues that have potential to lower the stock market in early 2017 could come from markets in China.  It’s not only the fiscal policies, but also the geo-political climate in the South China Sea.  President-elect Donald Trump's approach to the Chinese growth will have ramifications on the global stock market.

Feel free to call me directly at 312-373-5087 if you would like to discuss a strategy that makes sense for your portfolio.  You can also email me at thaberkorn@rjofutures.com.

 

Emini Daily

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