Market Lab Report – Premarket Pulse 1/27/16

By | January 27, 2016

Scalper1 News

Major averages rose on slightly higher volume with the narrowest of the major indexes, the Dow Jones Industrials, posting a so-called follow-through day. Oil bounced but is trading lower today. Apple (AAPL) is also trading lower in premarket trading after reporting the sales of its iPhone grew at the slowest pace since introducing the iPhone in 2007. AAPL consequently is projecting is quarterly revenues to be well below estimates which, if realized, would mark its worst quarterly revenue decline since 2001. Both oil and AAPL are putting pressure on futures which are currently off almost half a percent. The Fed concludes its two days of talks today at 2 pm EST when it will release a policy statement. The question will be whether they stay their course on additional rate hikes this year, proclaiming their confidence in the economic recovery, or whether they will revert to their dovish stance of gradual rate hikes as needed by acknowledging the recent market turmoil at home and abroad is cause for concern. CME FedWatch puts the odds of a rate hike in March at 34% and in April at 42%. Gil Morales puts the odds of the Fed hiking rates at 0%, but how the market reacts remains to be seen. Indeed, should the market correction worsen, Dr K puts the odds of the Fed launching QE4 at 100%.   Scalper1 News

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