Market Direction: BULLISH alert
issued 11/10/2016
Stock on the Radar (STAR)© 6-26-2017 was launched last Sunday evening. New stock recommendations are typically made available late Sunday, so investors can prepare to take a position when the market opens Monday for trading.
Last Week Review: U.S. stocks were relatively flat for the third straight week as news regarding potential policy changes has been met with tempered expectations from investors. While moves in the stock market have been muted, the price of oil fell for the fifth straight week, dipping below $43 per barrel for the first time in 18 months. However, the weakness in the energy sector was balanced out with the Federal Reserve Board’s announcement that all 34 banks tested passed the quantitative portion of this year's stress test. It's easy to become complacent when stock market volatility is low for an extended period of time.
On the heels of strong year-to-date performance (up 19% vs. 9% for the S&P 500), the technology sector's volatility in recent weeks has evoked comparisons to the tech bubble of the late 1990s. While investors’ concerns are understandable, we believe that fundamentally, the sector is on a far better footing than it was 17 years ago.
Stock on the Radar (STAR)© 6-26-2017 was launched last Sunday evening. New stock recommendations are typically made available late Sunday, so investors can prepare to take a position when the market opens Monday for trading.
Last Week Review: U.S. stocks were relatively flat for the third straight week as news regarding potential policy changes has been met with tempered expectations from investors. While moves in the stock market have been muted, the price of oil fell for the fifth straight week, dipping below $43 per barrel for the first time in 18 months. However, the weakness in the energy sector was balanced out with the Federal Reserve Board’s announcement that all 34 banks tested passed the quantitative portion of this year's stress test. It's easy to become complacent when stock market volatility is low for an extended period of time.
On the heels of strong year-to-date performance (up 19% vs. 9% for the S&P 500), the technology sector's volatility in recent weeks has evoked comparisons to the tech bubble of the late 1990s. While investors’ concerns are understandable, we believe that fundamentally, the sector is on a far better footing than it was 17 years ago.
How
the market finished last week, the S&P 500 up 0.2%, the Nasdaq up 1.8%, and
the Dow flat 0.0%.
This Week: Since the SPX hit yet
another new high on Monday (6/19), the current bull market is now 3023 days
long and is +262.7% since it started on 3/10/09. Additionally, it is +3.7% so
far in its 9th year (since 3/10/17).
Despite
a new SPX high on 6/19, indicators are starting to show warning signs that a
potential pullback may be looming.
Overall,
there were quite a few changes in the sentiment indicators this week, but the
overall net effect was simply more disagreement. With a few weeks until Q2
earnings season begins and a relatively light economic calendar next week
(except for perhaps Friday’s PCE report) political events are likely to remain
center stage again.
Some
technicians believe, the recent one-day SPX high on 6/19 is starting to look
like it may have been a technical “blow-off” top, leaving the 2440 resistance
line intact.
Economic
Calendar: Durable Goods Orders (6/26), International Trade in Goods (6/28), GDP
(6/29), Personal Income and Outlay (6/30)
Some of the major earnings announcements on deck: NKE,
DRI, KBH, FDS, STZ.
$tockMarketDirection proprietary model is currently BULLISH. We strongly encourage you to monitor positions closely, exercise proper money management strategies and follow us at $tockMarketDirection for ALERTS we may issue advising a change in the current market direction. Stay tuned and follow us. If you have a testimonial or comment of how this website has helped you we would like to know, write us. Share with a friend. Cha-ching.
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