Weekly Newsletter – June 2, 2019

U.S. stocks finished lower on the week yet again, making it 6 red weeks in a row from the DOW, the longest res streak since 2011. This week had a totally new complication thrown in the mix, and that was tariffs amongst the U.S. and Mexico. The China U.S. drama continues, and also heated up even more this past week. There is a ton of opportunity both long and short in these markets. From a longer term standpoint, you have to just sit back and enjoy the market sell off, because if you were prepared for it like we have been, that means you have a lot of cash itching for you to put it to work. In the coming weeks, getting “starter” positions on some key names will be important. From a day trading standpoint, we are in heaven as the range and momentum patterns have been almost automatic for us to lock in profits on. It’s a great time to be a KAF Investing chat room member! We are playing options, pennies, mid caps, large caps, and everything in between. 

“U.S. stocks, Treasury yields, and oil prices all dropped on Friday after President Trump surprised the market by threatening to impose a 5% tariff rate on all goods imported from Mexico. Friday’s 1.3% decline in the S&P 500 sent it below its 200-day moving average (2776) and extended its weekly decline to 2.6%.—The Dow Jones Industrial Average (-1.4%), the Nasdaq Composite (-1.5%), and the Russell 2000 (-1.4%) extended their weekly losses to 3.0%, 2.4%, and 3.2%.—The 5% tariff rate will go into effect on June 10 and will increase incrementally during the summer to reach 25% on Oct. 1.”