Negative first trading day of the year for the US stock market

US indexes dropped yesterday

Yesterday, Tuesday 3 January, was the first trading day of the year.

All the US major indexes have closed in a loss.

The S&P 500 at -0.4%, the Nasdaq at -0.76% and the Dow Jones closed at -0.03%.

The worst-performing stocks

Tesla and Apple have registered heavy losses yesterday.

The company owned by Elon Musk dropped 12.2%, which erases all the gains registered since Tesla joined the S&P in 2020.

Apple’s shares went down  3.7% on the first trading day of 2023 because there are concerns regarding the possible insufficient supply for this quarter.

The company’s market capitalisation has dropped to under $2 trillion.

Today’s important data to watch 

The US Institute for Supply Management Manufacturing Purchasing Managers’ Index (PMI) for December will be shared today at 3 pm GMT.

At 7 pm GMT, the Federal Open Market Committee (FOMC) will release December’s meeting minutes.

Investors have all their eyes on it because it can give some clues on the 2023 outlook.

Markets can be volatile today due to the two above-mentioned important data.

Sentiment Indicator – Fear & Greed Index

The market sentiment is at 36 in the “Fear” mode which is higher than the level registered one week ago.



FedWatch Tool – FED rates probabilities

72.3% of investors are expecting the FED to increase the interest rates by 0.25% at the next meeting.

The remaining 27.7% are expecting a 0.50% rate increase.

No other options are considered at this time.

The next FED meeting is on 1 February 2023.

Portfolio Update

I have closed some short positions on stocks while keeping my long positions open.

This allowed my portfolio to make a profit last month, despite the overall market drop.

My view remains bearish at the moment, based on the current economic situation and the latest speech from the FED.

I am expecting more downside in the upcoming days, however, I am aiming to make a profit regardless of the market direction.

If you are already copying my portfolio, please keep the copy open.

If you are thinking of copying me, now could be the right time, if you can invest for the long term (years).

Remember to copy the open trades to optimize the copy.

Remember to set the stop loss on the copy at the minimum level, so you don’t get stopped if there is a correction.

Thank you, everyone. Have a nice day!

Steps to follow to copy my portfolio automatically:

1. Create an eToro account here: https://federicamontella.com/go/etoro/

2. Verify your account and make a deposit of at least 200 USD (you can deposit in any currency, like GBP and EUR)

3. Go to my profile page: https://federicamontella.com/go/etoro-passionforprofit/

4. Start the copy (copy open trades and set the lowest stop loss possible, to allow some movement)

5. Enjoy, it’s all automatic. You will make passive income 24/7

Let me know if you have any questions.

 

Federica Montella

eToro Popular Investor

 

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Author: Federica Montella
eToro Popular Investor, food lover and blogger. Stock trader and Popular Investor at eToro. I am on a mission to find the best restaurants and food to eat.