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...
Also here's a disclaimer that you need to read:
This stock advice are just my personal opinion. I am not a professional stock picker or analyst. I may make trades on the information provided here and as a result it is possible for me to hold a position in the mentioned stocks.
The information provided here is for informational purposes only. It should not be considered legal or financial advice. You should consult with an attorney or other professional to determine what may be best for your individual needs.
I do not make any guarantee or other promise as to any results that may be obtained from using the content. No one should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence. To the maximum extent permitted by law, I disclaim any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.
Content contained on or made available through this email is not intended to and does not constitute legal advice or investment advice and no attorney-client relationship is formed. Your use of the information is at your own risk.