We are waiting for the year-end closing data. So the weekly blog will be out on Monday 12/31/2018. We will be focusing on the forecast of 2019 based on how the year 2018 is closed.
Happy New Year!
We are waiting for the year-end closing data. So the weekly blog will be out on Monday 12/31/2018. We will be focusing on the forecast of 2019 based on how the year 2018 is closed.
Happy New Year!
The recent selloff has been absolutely brutal. The market has gone into a sharp selloff that is very similar to the previous selloff in velocity and magnitude in October 2007. From 10/12/2007 to 1/25/2008 during a 15-week period, the S&P 500 declined from 1576 to 1270, a 19.41% decline.
The sentiment is relentlessly bearish, the negative news and bearish forecasts are overflowing everywhere. It feels no end is in sight. Yes, the end is not near yet, but please keep it in perspective. When this is all done and over with, you will be presented excellent opportunities that you wish you had in the last cycle.
Last week we questioned the validity of the rally that was induced by the trade war truce. It turned that the rally was used as a selling opportunity. It didn’t even have the strength to reach a symmetry swing at 2845 to create an appearance of a bullishness. It promptly failed at 78.6% of the ab swing at 2800.
The news of a cease fire of the trade war and the most recent FED statements seem to be providing the much needed good relief for the market. The S&P 500 futures gapped up almost 40 points at open for the overnight session on Sunday night. The important question is can we trust this rally? Are the problems causing the market to selloff in October gone?
