January returns weaken after options expiration Friday. Earnings season picks up next week, as a new US administration takes office. Expectations for a further rebound in stocks may already be baked in to consensus expectations.
The MACD indicators applied to DJIA, S&P 500 and NASDAQ are all positive as of today’s close. These leads to several buy signals across various equity indexes, according to the seasonal investment strategy.
Reliance on coal for energy in the US continues to fall, even under the Trump administration. Solar power is on the rise. As the US market pulls back, US tech stocks underwhelming guidance is likely misleading.
US elections rule the headlines while stimulus package hopes keep the markets afloat. Goldman Sachs likes shorting the USD, but a risk off approach heading into the bullish part of the year should dwarf any currency devaluation issues.
November is a very strong month for US equities, but in an election year it really shines for the SPX and DJIA. Its much weaker for tech and small cap stocks.
Halloween typically offers investors a treat. A six day trading period starting next week is usually very bullish.
Seasonality is problematic this year, likely due to the elections and politics around another COVID stimulus package. Still, time and history work for the strategy.
After five straight monthly gains, the US stock market finally came under pressure in September. The NASDAQ hit the ‘correction level’ of a 10% slide. Markets have rebounded, but October is usually weak. Patience is needed for entry into the seasonally positive part of the year.
Oil and the energy sector have been beat up in September. Is there value there? Meanwhile, healthcare is being reviatalized. The tech sell off may be over for awhile, as markets show signs of being oversold.
With such a highly divisive election coming in November, a ‘VIX bubble’ has appeared. This is distorting how traders are reacting to the current market sell off.