• Elite Gentleman

What's going on with the market this week? (week 9)

What a week! Last week we had Powell finally give us the relief we needed. He told the market that he cares and is watching. He also said that he "will be patient" with future rate hikes. This lifted the market BIG time (especially the tech and small cap which had been hammered due to their interest rate / growth exposure). Here's a video of the glorious words from Powell: https://www.cnbc.com/video/2019/01/04/powell-says-fed-will-be-patient-with-monetary-policy.html


We have another talk from Powell this week, and also the fed meeting minutes. As long as the minutes line up with Powell's talk from last week in waiting to raise interest rates, then we should continue to see this rally gain strength. Also helped that the added jobs number beat expectations by almost 200,000 jobs.


Also this week talks with china resume which could be a nice catalyst for tech and china exposed companies.


With that said let's take a look at the charts:


This is the Dow, S&P, Nasdaq, and Russell all on one percentage based chart (from yahoo)

As you can see, we seem to have put in a bottom. We achieved a "whoosh" defined as extreme fear based selling on Christmas eve. This brought us to a new bottom for the year and seemingly washed out most stock holders who were looking to sell. Then we rallied off the bottom in a strong fashion. The next sell off did not see a new bottom which is huge. Then another rally ensued. This means that we have begun to reestablish an upward trend in the charts (seen by red lines above) which can help continue to fuel the rally here. I would be looking here for another sell off back to the lower trend-lines to buy. Also we should not that some of the indexes are approaching their 50 day MA which could provide either resistance or an opportunity for a breakthrough. If the major indexes break through their 50 day and hold at the close, look for the . algo's to drive the rally even further.


Merry Christmas and a happy new year. As always God bless and may the odds be ever in your favor...


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