2019 is on target to be the fifth best year-to-date performance through April since World War II. There has been a trend since World War II that a best performing first four months may presage the “sell in May and go away” phenomenon. This coming week is the busiest week for earnings report. The earnings data
The emerging markets have shown signs of a new life with the recent development of trade war. The White House is equally eager to resolve the trade war headline risk for the stock market.
The market has rallied impressively for the last 9 weeks and it has caused major heart aches for the bears and the scared retail investors who have been told to stay on the sidelines. From the market breath perspective, you have to admit that the likelihood of re-visiting the December low is getting slimmer as time goes on.
Last week we sent out a blog about the furious bear market rally and the pending market top that occurred on Friday 01/18/2019. After the long weekend, the market did give us the correction that was expected. However, the correction has been very mild. It seems that the big guys are buying up the DOW.
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.
