‘Sell the rally’ replaces ‘buy the dip’ as battered market enters critical week – MarketWatch

Where have all the dip-buyers gone?

After weeks like the train wreck that just passed, investors are supposed to come along and scoop up bargains, right? That’s been the norm for decades, after all. Alas, it’s not the norm any more, as you can see from this Wall Street Journal chart:

Indeed, the reliable “buy-the-dip” trend that made this market so dependable has left the building, with the S&P 500

SPX, -2.33%

 , on average, failing to rebound following weekly declines this year for the first time since 2002, according to Morgan Stanley.

The start of the week certainly looks no different. Trade-war skittishness and uncertainty over the Fed’s direction aren’t helping. It’s got the look of another downbeat start.

The Onion, which says we’re in an “Everest/Mariana Trench pattern,” channeled the White House with its tweet on what we’re seeing:

At any rate, the lack of those aforementioned dip hunters has caused Cantor Fitzgerald’s Peter Cecchini, in our call of the day, to shift his approach.

“Our disposition towards equities has moved from buy-the-dip to sell-the-rally,” Cecchini was quoted as saying in a Bloomberg piece. “If I’m not constructive on the credit markets, then I won’t be constructive on the equity markets.”

And no, he’s not constructive on credit. Cecchini, heralded as one of relatively bearish analysts in 2018, says decelerating U.S. growth and a frothy loan market will keep the credit market under stress as we head into next year.

And speaking of stress…

The market

Futures on the Dow

YMZ8, -0.07%

 , S&P

ESZ8, -0.02%

 and Nasdaq

NQZ8, -0.04%

 are all showing no signs of a rebound. In fact, quite the contrary. At the same time, yields on the 10-year Treasury

TMUBMUSD10Y, +0.19%

 are creeping up again.

Meanwhile, gold

GCZ8, -0.04%

 , taking advantage of the jumpy climate, is catching a slight whiff of buying. Crude

CLF9, -1.90%

 is basically flat.

Check out Market Snapshot for more

Asia markets

ADOW, -1.72%

 from Sydney to Hong Kong

HSI, -1.19%

 also felt the pressure and closed with widespread losses. Europe markets

SXXP, -0.69%

aren’t faring any better in their kickoff to the week.

Cryptos, which have gotten beaten up lately, are providing a splash of green, with bitcoin

BTCUSD, -1.75%

 holding above the $3,500 level.

The chart

There was plenty of carnage in all corners of the market last week, but it was especially nasty for FANGMAN stocks — Facebook

FB, -1.58%

 , Apple

AAPL, -3.57%

 , Netflix

NFLX, -6.27%

 , Google parent Alphabet

GOOG, -3.01%

 , Microsoft

MSFT, -4.00%

 , Amazon

AMZN, -4.12%

 and Nvidia

NVDA, -6.75%

 . All told, the group lost more than 10% for the week, according to Wolf Richter of the Wolf Street blog.

And as this chart shows, the group has shed 22.4% from its peak:

Richter reminds investors of the magnitude of the decline

“The FANGMAN stocks as a whole dipped into the red year-to-date on Friday,” he wrote. “From that perspective, this $1.034 trillion that disappeared since Aug. 31 isn’t anything to write home about — these stocks being down just a smidgen for the year, a harmless form of easy-come, easy-go. It’s not like it can’t get a whole lot worse.”

The buzz


TSLA, -1.40%

 boss Elon Musk had a lot to say on “60 Minutes” on Sunday about his “unfair” critics, his “terrible” childhood, and his lack of respect for the SEC. “I’m just being me,” he said. “I mean, I was certainly under insane stress and crazy, crazy hours. But the system would have failed if I was truly erratic.”

A reported 136,000 protesters took to the streets across France again over the weekend, prompting French President Emmanuel Macron to potentially announce measures to ease the violence when he addresses the country on Monday. It has even forced a cut in the country’s growth forecast.

Read: Paris flames as more protest erupt.

Fund managers controlling a combined $32 trillion are calling on the powers-that-be to accelerate steps to fight climate change, according to Reuters. A total of 415 investors from around the world signed the 2018 Global Investor Statement to Governments on Climate Change demanding urgent action. “The global shift to clean energy is underway, but much more needs to be done by governments to accelerate the low carbon transition and to improve the resilience of our economy, society and the financial system to climate risks,” the statement said.

Another wrinkle on the trade front? China summoned the U.S. ambassador to Beijing on Sunday to protects the arrest of Huawei’s chief financial officer, Meng Wanzhou, who was detained in Canada on Dec. 1 at the behest of the U.S. That news shook markets up pretty good last week. U.S. Trade Rep.Robert Lighthizer tried to keep that arrest separate from said Sunday that U.S.-China negotiations should not be impacted by the controversial arrest of a top executive from Chinese telecom giant Huawei.

The quote

“What these indictments and filings show is that the president was at the center of a massive fraud — several massive frauds against the American people” — Jerrold Nadler, incoming chair of the House judiciary committee, in a CNN interview.

The stat

Associated Press

A bin burns as school children demonstrate in Paris.

10 billion euros ($11.4 billion) — That’s how much money small- and medium-sized business in France are expected to lose due to the riots across the country. The French retail federation told Reuters on Friday that retailers had already lost about 1 billion euros since the protests first began.

The economy

November CPI and retail sales are the headline economic numbers this week, but we won’t get those until Wednesday and Friday, respectively. As for Monday’s schedule, not a whole lot to get excited about, though the Job Openings and Labor Turnover Survey hits at 10:00 a.m. Eastern.

Read: Some doubts on U.S. economy justified, doom and gloom is not

Random reads

Conservative’s better start chatting with the city dwellers.

Did Minneapolis just pass the most important housing reform in America?

New York Times columnist follows up his controversial take from last week with “The Case against Meritocracy.”

Boasting about the crazy hours you work is actually a sign of failure.

Those elite NYC buildings aren’t fetching prices like they used to.

The year in pictures, as presented by CNN. Here’s one of them:

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Snowstorm grounds flight from Allentown to Charlotte; strong system to visit Lehigh Valley late week – Allentown Morning Call

A wide swath of the Carolinas was slammed by a winter storm Sunday, cutting power to hundreds of thousands of customers and bringing roadway and airport traffic to a halt.

More than 1,700 flights were canceled on Sunday, according to flightaware.com, including more than 1,100 at Charlotte Douglas International Airport.

On Monday morning, American Airlines Flight 5105 scheduled to leave Lehigh Valley International Airport for Charlotte was canceled. Arriving flights from Charlotte were shown to be on time.

According to the Charlotte Douglas website, most airlines were planning to resume normal operations by noon today. Travelers are advised to visit Flightaware, as well as the FAA real-time flight information map for updates. In addition, those flying to or from Charlotte today should frequently check with their air carrier for cancellations or delays before heading to the airport.

Storm System to Visit Lehigh Valley This Week

Here at home, the National Weather Service says the cold and dry pattern looks to continue through midweek.

Two noted areas of interest for the week include one in the short-term, and one in the long-term forecast.

On Tuesday night, meteorologists say some operational models are depicting some light snow showers for some areas, but there is little indication this would be measurable precipitation.

The bigger concern is a storm storm system set to affect the region Friday and Saturday, with an outside shot we see wintry precipitation as early as Thursday.

As of now, the weather service says temperatures would likely be cold enough Thursday morning for some snow showers, but amounts would be quite light. There is still a big ‘if’ associated with any chance at all for this Thursday system, but it will continue to be monitored.

The “main event” is the weekend system expected late Friday through Saturday, but the good news is that temperatures look warm enough for an all-rain event in the Lehigh Valley.

The weather service says the main question marks for this weekend storm will be how soon precipitation reaches the area, and how close the system will be to the area. That will determine any potential for heavy rain and flooding, as well as a final turnover to snow in the north and west on Saturday night.

Here is the extended Lehigh Valley forecast from the National Weather Service:


Sunny, with a high near 38. North wind 3 to 7 mph.


Mostly clear, with a low around 21. North wind around 5 mph becoming calm in the evening.


Sunny, with a high near 39. Calm wind becoming west around 6 mph in the afternoon.

Tuesday Night

Partly cloudy, with a low around 26. Northwest wind around 6 mph.


Sunny, with a high near 38. Northwest wind around 7 mph.

Wednesday Night

Partly cloudy, with a low around 23.


Mostly cloudy, with a high near 36.

Thursday Night

Mostly cloudy, with a low around 30.


A chance of rain, snow, and sleet before 10am, then a chance of rain. Cloudy, with a high near 48. Chance of precipitation is 50%.

Friday Night

Rain likely. Cloudy, with a low around 41. Chance of precipitation is 70%.


Rain likely. Cloudy, with a high near 48. Chance of precipitation is 60%.

Saturday Night

A chance of rain and snow. Mostly cloudy, with a low around 35. Chance of precipitation is 30%.


Mostly sunny, with a high near 45.


Twitter @ssigafoos


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Japan’s top three telcos to shun Huawei, ZTE network equipment: Kyodo – CNBC

The ZTE logo is seen on an office building in Shanghai on May 3, 2018.

Johannes Eisele | AFP | Getty Images

The ZTE logo is seen on an office building in Shanghai on May 3, 2018.

Last week sources told Reuters that Japan planned to ban government purchases of equipment from Huawei and ZTE to ensure strength in its defences against intelligence leaks and cyber attacks.

A SoftBank Group Corp spokesman said Japan’s third-largest telco was closely watching government policy and is continuing to consider its options. The amount of equipment in use from Chinese makers “is relatively small”, he said.

The country’s top two telecommunications operators, NTT Docomo Inc and KDDI Corp, said the firms had not made any decision yet.

Docomo does not use Huawei or ZTE network equipment, but it has partnered with Huawei on 5G trials. KDDI also does not use Huawei equipment in its “core” network, a spokeswoman said, adding it does not use any ZTE network equipment.

Huawei did not respond to Reuters request for comment, while ZTE declined to comment.

Huawei has already been locked out of the U.S. market, and Australia and New Zealand have blocked it from building 5G networks amid concerns of its possible links with China’s government. Huawei has said Beijing has no influence over it.

Japan’s decision to keep it out would be another setback for Huawei, whose chief financial officer was recently arrested by Canadian officials for extradition to the United States.

World financial markets have been roiled since news of the arrest, on worries it could reignite a Sino-U.S. trade row that was only just showing signs of easing.

Shares of SoftBank, which has the deepest relationship with Huawei among the big Japanese telcos, fell the most among the three top Japanese telcos on Monday, ending down 3.5 percent.

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So much for a ‘Santa rally’: Trump’s trade war is sending S&P 500 towards its worst December since 2002 – Business Insider

Hopes for a Santa rally are fading fast with fears over US President Donald Trump’s trade war with China helping to send the S&P 500 towards its worst December in 16 years.

Asian markets kicked off what looks to be a bearish day for global stocks on growing concerns over global economic growth and the US-China trade war. European stocks and US futures also fell.

Tensions over US-China trade were heightened even further as China summoned the Canadian and US ambassadors over the weekend regarding the arrest of Huawei’s CFO in Canada last week. China described the arrest of Meng Wanzhou as “lawless” and “extremely vicious.”

“Global stocks are set up for a rough ride this week after something of a drubbing last week,” said Neil Wilson, Chief Market Analyst for Markets.com. Markets tend to rise in a “Santa rally” in December. The S&P 500 has declined in December only four times since 2002.

US equity futures are trading lower on Monday — the Nasdaq is down 0.4% while the Dow and S&P 500 are falling 0.3%. The S&P 500 has fallen more than 4.6% for the month. If it closed at that level come New Year’s eve, it would be the worst since 2002, when the index slumped 6%.

In China, the Shanghai Composite closed down 0.8% as investors fret about a continued war of words. Weak Chinese inflation figures and continued concerns about trade weighed on equities. Chinese goods exports growth slowed from 15.6% year-on-year in October to 5.4% for November.

The Nikkei slumped 2.4% after data showed Japan’s economy just went sharply into reverse.

European markets also slumped, with Germany’s DAX Index down 1.2% as uncertainty looms about the German economy. Weak export data and a poor year for the country’s powerhouse automotive industry aren’t helping the German cause. UK Prime Minster Theresa May is under pressure and facing a massive defeat on a crucial Brexit vote which could endanger her job.

The benchmark Euro Stoxx 50 dropped 0.6% as of 9.56 a.m in London (4.56 a.m EST).

In France, the ongoing ‘yellow vest’ protests are slowing the country’s economy with the Bank of France predicting 0.2% growth in the fourth quarter down from an estimate of 0.4%.

Investors in the US are also still jittery about the Treasury “yield curve,” a wonky market event that can signal a recession. The outlook between the 2-year and 10-year government bonds stayed flat, but investors are concerned the curve will invert, which would add weight to any forecasts for a slump in growth.

“Bond markets have been more accurate than stock markets in predicting economic slowdowns,” said Hussein Sayed Chief Market Strategist at FXTM. “It looks like a matter of time before the long end of the curve inverts too. While this doesn’t necessarily indicate a recession is imminent, it’s a bold warning signal.”

Elsewhere in markets, Friday’s agreement between OPEC and Russia sent oil prices initially higher with Brent crude trading up 0.6% before dropping 1.5% as of 10.40 a.m in London (5.40 a.m EST).

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Norwegian Cruise Line ship leaves couple stranded in Cuba after departing early – Fox News

Kevin Rohrer’s and his girlfriend’s vacation ended abruptly in Havana, Cuba after their cruise ship left without them on a recent four-night Norwegian Cruise Line sailing in the Caribbean.

According to News.com.au, the American couple returned to the dock more than an hour ahead of what they thought was the Norwegian Sky’s 5 p.m. departure time only to find the ship was already gone.

“It was a frightening situation. We were devastated,” Rohrer said in his complaint to the cruise company. “We exchanged money and we took a taxi to the airport. American Airlines told us they wouldn’t take a credit card and quoted us 472 pesos ($465). We didn’t have that much money.”

Nonetheless, the couple appears to be out of luck as Norwegian Cruise Line made multiple notes of the departure time change well in advance of the cruise.

Nonetheless, the couple appears to be out of luck as Norwegian Cruise Line made multiple notes of the departure time change well in advance of the cruise.
(Norwegian Cruise Line)

The couple managed to book a flight home and Rohrer has since contacted consumer rights group Elliott Advocacy.

Read more from TravelPulse:

Nonetheless, the couple appears to be out of luck as Norwegian Cruise Line made multiple notes of the departure time change well in advance of the cruise. What’s more, the company’s terms and conditions point out that “shipboard time may differ from the port of call” and that it’s the “guest’s responsibility to pay all expenses incurred to rejoin the ship” in the event they are left behind.

In a statement to Michelle Couch-Friedman of Elliott Advocacy, Norwegian Cruise Line said it notified guests of the time change and circulated it on their e-documents more than a month before the Havana stop. “Additionally, the day before calling into Havana, the Cruise Director announced the new time repeatedly throughout the day and additional signage was placed on the gangway for all those disembarking to see,” the cruise line stated.

The hard-learned lesson is one that all travelers should take note of. “In the end, it’s the traveler’s responsibility to know when to be back on-board that ship. If you miss your cruise home, unfortunately, there’s no one to turn to for a refund or reimbursement,” said Couch-Friedman.

This story was originally published by TravelPulse.

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