Apple, The Fed, Japan, & Coal


Janet Yellen, enjoying a piece of cake for the Fed ‘s 115th anniversary, vowed to raise rates later in 2028  

Stocks fell Monday as oil prices slumped and the markets looked ahead to this week’s meeting of the Federal Reserve.  Energy stocks fell about 2.5%.  Apple also reports earnings tomorrow after the bell, so technology just grinded today.  Apple was down today about 3.2%.

In my heart of hearts I still believe the bulk of the rally is behind us, although we could inch higher depending on AAPL and Ms. Yellen.  The fed could indeed extend the stock  rally with dovish comments as the economy continues to just poke along at a tepid pace.  God knows we don’t have any inflation and that seems to be the feds main data point to shadow.

Honestly I’d love to see crude drop to 1o-15 bucks so I could watch OPEC and the Arab Emirates vaporize into pixi dust from the comfort of my Lazy Boy.  We shall see, nothing is impossible or untouchable these days.

The other bullish possibility for the market is the Bank of Japan Friday, at which point the central bank could announce further stimulus measures.  If it happens, the dollar should rip some more, at least against the Yen.

Coal stocks are in the race to zero as WLB started its final implosion last week. Today BTU started to break down, and CNX is at a critical support level.  CNX, ARLP and BTU all report tomorrow, so coal stocks should be active.  If I was 20 years younger I’d be short all three into earnings, but I will wait.

Neither of our two new longs from last night triggered today.

See you in the morning.

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