Stock Futures Fall After President Trump Escalates Tariffs

Ulta Beauty ULTA Stock Chart 9.3.19

Ulta Beauty ULTA Stock Chart 9.3.19

Ulta Beauty ULTA stock price imploded Friday after earnings. It's the perfect stock to watch if you're comfortable short selling.

But you need a plan. It's very easy to look for short sales as the stock rallies off the exaggerated move lower. A common pitfall is trying to catch a top as the stock slowly rises against you. Trust me, I've been there.

My game plan for this stock this week is to only look for short sales as long as the stock is trading below the Monday opening price. This prevents me from shorting against a short covering rally (which can be fast and furious).

Moving averages are absolutely no help in a 30% move like this. Use candlesticks, and read the tape and you should have plenty of opportunity. This should be a solid trade (under these rules) for the next month.

Pete

Dow Jones Futures Fall After Trump Tariffs Escalate China Trade War

Dow Jones futures fell early Tuesday morning, along with S&P 500 futures and Nasdaq futures. On Sunday, President Donald Trump went ahead with new China tariffs on $110 billion worth of imports, including some Apple (AAPL) products for the first time. Beijing retaliated, further escalating the China trade war.

investors.com/dow-jones-futures-fall

Negative Interest Rates Threaten the Financial System

Markets may need to be rebuilt on a new set of assumptions, but we don’t know what those should be or how they would work.

Negative interest rates represent a threat to the financial system.

To understand why, let’s start with the existing fractional reserve banking system, which is more than a century old. For every dollar that goes into a bank, some set amount (usually about 10%) must go into a reserve account to be overseen by the central bank. The rest is either lent out or used to buy securities.

bloomberg.com/opinion/negative-interest-rates-threaten-the-financial-system

Anxiety-ridden August has investors bracing for a rough September, historically the worst month

It was an August of angst for investors, ahead of what most now expect will be a stressful September.

But last month did more damage to the collective psyche than to stock prices. This speaks both to the market’s resilience and to this delicate moment in the economic cycle.

The 6% pullback from the late-July record high to the August lows in the S&P 500 was partially recovered, but in choppy, treacherous fashion.

cnbc.com/anxiety-ridden-august-rough-september

Pete Renzulli
 

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