Political stability creates a solid back drop for a decent 2020. The US Fed is accomodative while weak earnings and high valuations remain.
Novemeber is tracking the seasonal patterns very closely. We still expect a mild pullback early next week, but from then on we are likely to see post-Thanksgiving gains. Early December can be disappointing for bullish traders, but as Christmas approaches the bulls come back to the parade.
There are several market tendencies or historical biases that we highlight throughout the year. One historical tendency worth noting at this time of year is the “January Effect.” The “January Effect” refers to the tendency of small cap stocks (as a group) to outperform their large cap counterparts early in the calendar year.
Markets are up strongly since issuing the recent Buy Signal. The next two weeks often have retracements of monst of the gains in the first days of November. This mid-November weakness is a good time to add to positions.
November is generally a very good month for US stocks. However, in years preceeding US Presidential elections, November has not always shown a strong performance. This year, options expiration week comes early. Our calendar shows the dates investors need to watch.
We lay out the buy points and stop losses for the Tactical ETF Portfolios based on the the Seasonal Trade Strategy
Suddenly, the market turns bullish. The seasonal bull run has begun and investors are jumping in.
With the US economic indicators faltering, everyone wants ideas on how to reduce their invetsment portfolio risk. Here are so ideas, and also a simple analysis of which US sectors are performing well.
October is the last month of the worst six months for the S&P 500 and worst four months for the NASDAQ. So it is time to begin preparing for a switch to a more bullish stance.
We noted previously that the market would likely work its way higher in the first few weeks of September. Now momentum appears to be fading short of previous all-time highs. With the Fed’s interest rate cut behind us, future price increases need support from alleviating trade issues and more interest rate cuts. Neither of those factors exist yet.