Archives of “May 2020” month

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Federal Reserve FOMC minutes due Wednesday – preview

  
  Analysis

Federal Open Market Committee minutes due at 1800GMT on 20 May 2020

Monetary policy was left unchanged at the April meeting.
The minutes will be scoured for any clues or discussions that that took place on any new potential policies theBank is considering, and what the Committee had to say, if anything, on negative rates.
Only these past few days though we have had appearance by Fed Chair Powell on TV and in front of Congress so its unlikely there is much to be revealed in these minutes that Powell has not already disclosed.
Federal Open Market Committee minutes due at 1800GMT on 20 May 2020 

Reuters Tankan (May) – Business sentiment hits decade lows

  
Analysis, Economy
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Reuters report on their monthly Tanakn survey for May 2020:

  • slump in Japan business mood deepens, hits decade lows again on coronavirus woes

Manufacturers index -44 in May vs -30 in April,  falls to lowest level since June 2009

  • non-manufacturers index -36 vs -23 …  lowest level since Dec 2009

Manufacturers august index seen at -51

  • non-manufacturers -48
The BOJ easy money policy is firmly entrenched, such a dire outlook in Japan. The extent you use central bank policy to assist your currency view, bearish yen.

US major indices snatch defeat from the jaws of victory

  
Analysis, US Market
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Major indices move lower on the day after Moderna results questioned by the scientific community

The US stocks were trading near session highs heading into the last hour of trading
The S&P index was near 2964.21. The NASDAQ index was making new session highs at 9317.25. Then there was a report from STAT that questioned the results from the Moderna coronavirus test results.  Stocks moved lower, and the major indices snatched defeat from the jaws of victory.
Suddenly there is a look or feel as good as it used to.
A final look at the numbers are showing:
  • S&P index -30.97 points or -1.05% at 2922.94
  • NASDAQ index -49.72 points or -0.54% at 9185.10
  • Dow -390.51 points or -1.59% at 24206.84.

Some losers today included:

  • Wells Fargo, -5.67%
  • FedEx -3.75%
  • Boeing -3.63%
  • Charles Schwab -3.57%
  • Gilead -3.28%
  • Procter & Gamble, -3.25%
  • Chevron -3.24%
  • Bank of America -3.14%
  • Exxon Mobil, -3.11%
  • PNC financial -2.88%
  • Citigroup, -2.7%
  • Home Depot, -2.61%
Some winners today included:
  • Beyond meat, +4.62%
  • square, +3.39%
  • Southwest Airlines, +2.29%
  • Slack, +2.28%
  • Facebook, +1.76%
  • AMD, +1.5 and present
  • Adobe, +1.22%
  • Chipotle, +1.09%
  • AliBaba, +0.94%
Walmart which traded as high as 131.99 1 better earnings and revenue before the opening, is closing down at 124.87. That is down -2.19%.

Psychological Risk Management

  
Analysis, Education
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  • If you’re out of balance, you’re going to make bad decisions, and trading the market is a decision game
    • If you’re overtrading, you’re out of balance
    • If you’re overcommited, you’re out of balance.
    • If your dollar risk is too high, you’re out of balance.
    • If you’re hung over, you’re out of balance.
    • If you’re sick, you’re out of balance.
    • If you need the money, you’re out of balance.
    • If you make too much money, you’re out of balance.
    • You’ve got to take time off. You can’t trade every day.
  • Pay more attention when you account size gets bigger
    • I’ve noticed over the years that when my account has been small for whatever reason, I have been really careful with it. I watch it like a hawk. When my account gets rich, I tend to fall into a habit of neglect. I’m making money. I have profits, and I’m more comfortable. I don’t keep as close an eye on it. That’s very foolish.
  • Take profits out of your account
    • You should spend some profits rather than letting the money stay in your account indefinitely. That’s been important to me over the years. I withdraw money from time to time and take a vacation or buy a new car. From a behaviorist’s standpoint, it gives a sense of reward. It provides conscious and subconscious motivation.
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