January 17, 2019

Market Commentary
By Art Cashin Prepared by UBS Financial Services Inc.

Statistics:
Cashin’s Comments
Fair Value = N.A.
An Encore Presentation
Buy Program = N.A.
Sell Program = N.A. On this day in 1874, two brothers died in the same bed. You might expect
that they were very close. Well these guys were. In fact, they were so close
the public paid money just to view their closeness.

They were the Bunker brothers (not their real name but a name they had
adopted, like most immigrants, when they came to America). The man to
whom the public paid money to see said brothers was a certain P.T. Barnum.
He introduced them under their first names, the ones they had been given
when they were born in Siam. They were the original Siamese Twins, Chang
& Eng - - joined at the side.

They surmounted a lot of difficulties. They even married two sisters (Adele
and Sarah Yates) and produced over 21 children, 10 for Chang and 12 for
Eng (no wonder folks paid to see them). Perversely (or maybe naturally),
although they shared more than most siblings, they fought like hell. One
even took the other to court to get a restraining order to keep the latter from
pummeling his brother (the former). Chang loved to drink heavily, sing and
tell jokes. Eng was sober and intense. But different lifestyles mean little
when you are joined above the hip. When Chang died of a heart attack, Eng
died hours later. They were buried under their given names but a mourning
nation didn't realize how important a question it was if they were buried feet
up or head up. It was extremely important because of the names they had
been given 63 years earlier. Chang meant "left" and Eng meant "right".

Left and right were not the directions that consumed traders on Wednesday.
As usual, it was up and down and, luckily for the bulls, it was mostly up.

The best performance came from the Dow, which got a big boost from
Goldman who, in turn, got big boost from a blowout earnings report.

Bank of America also had solid earnings, which helped the financials to be
the leading sector on the upside for the day.

The bulls were almost celebratory for the first thirty minutes of trading and
then the sectors began to separate.

The broad market began to sputter a bit. Sectors like consumer staples,
energy and communications began to see some mild selling.
Cashin’s Comments January 17, 2019
Page 2 of 3

Treasury yields inched up a bit.

The market was consumed by its own internals. The S&P got within hailing distance of its 50 day moving average
(2629) but could not push through.

A week ago, my very insightful friend, Dennis Gartman, called everyone's attention to the fact that the Dow had
rallied back into "the box". The box is a retracement range between 50% and 62%. Many corrective moves
move into "the box" and stall there. Dennis was kind enough to note that the bottom of the box for the Dow is
23,800, while the top is 24,350. Yesterday, the Dow rallied up to 24,288 coming close to breaking out of the
box but failing. So, for now, the jury is still out.

The market seemed to have a very mild "sigh of relief" move when PM May survived the no confidence vote in
mid-afternoon.

Overall, the indices failed to punch through the various resistance points and the volume was rather light.

Back to back winter storms for the Northeast and a holiday Monday may keep trading on the light side.

Overnight And Overseas – Tokyo closed modestly lower with slightly larger losses in Hong Kong and Shanghai.
The Shanghai continues to test that multi-year uptrend line. It bears watching. India rallied fractionally.

In Europe, we are seeing modest losses in London, Paris and Frankfurt.

Among other assets, Bitcoin is a touch softer, now trading just below $3700. Gold is flat, while crude is
somewhat softer. The euro is basically flat against the dollar and yields are a tick, or two, lower.

Consensus – The bulls will get another chance to try to punch through resistance. Although futures suggest a
negative start to the day.

Stick with the drill – stay wary, alert and very, very nimble.

R.I.P. Jack Bogle – Ave Atque Vale!

Trivia Corner

Answer - The ant is approaching at 151 inches per second. (One inch faster than the man's mouth and three
inches faster than the surviving end of the hot dog.)

Today's Question - Which candle would burn brighter - a tall thin one or a short fat one?

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Cashin’s Comments January 17, 2019
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