Waiting for the Seasonal sell signal in the NASDAQ, other sector trades come to and end in June. Gearing up for a sideways market is the plan now, until the strong months again come later this year.
The debate on the sustainability of inflation is alive! Markets react and traders battle out their Feds next move. Retail and consumer discretionary stocks look weak, while semiconductors and car resellers could bounce. Biotech sits on support.
Low Interest rates, strong USD, Value Stock strength continue to rule market direction. Coinbase debuts at sky-high valuation. SPX hits upper-band of channel. Healthcare, Biotech and Industrials see strength.
Black Friday Sales are expected to be dominated by online shopping with overall sales increasing by 5% from 2019. Is this a low estimate?
Biotech and Solar ETFs breakout, while gold broke down this week.
July and the second half of the year have started off consistent with historical trends and patterns. The first trading day was mostly positive with S&P 500 and NASDAQ recording gains. However, July has historically been a month of transition with gains early and weakness in the second half. Meanwhile, three seasonal tredns start in July.
The best six months of the year for certain US stock indexes has ended. A defensive stance is warranted as the summer months arrive.
Usually at this time of the year, early-April, stock markets would have had a nice seasonal rally. Well, there is nothing usual about the market or the economy this time.
As of today, the new bear market closing lows were on March 23. From their highs DJIA was down 37.1% and S&P 500 was down 33.9%.
Since then the market has rebounded to trim those losses.
Now we look to position for the worst months of the year ahead.
Large daily moves in both directions of 2-5% and huge intraday swings have taken a toll on markets and psyches. But the February 28 low has held through this week’s wild swings.
According to sector seasonality, there are two sectors that begin their seasonally favorable periods in March: High-Tech and Utilities.
Natural Gas, Energy and Copper still have to show signs of life to fulfill their usual bullish winter runs. Meanwhile, Strong US equity markets have lead to excellent returns in the model portfolios that adhere to seasonal trade stratagies. Expect some modest seasonal weakness soon, though.
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.