Wkly Market Round-Up thru Nov 2nd 2018; Where to from here?
Monthly Membership $300.00 All Access including the Option Masters Education Series BONUS: "One Free Private Coaching Session with Hal Brent" ONLY $199 All Three this month Coupon Code: HAL199 "Click Here" https://www.traderusergroup.com/membe... Hey Folks, remember for our US Members (and many others world wide) to adjust your time back 1-hour this Sunday morning. For the financial markets time does not stand still nor move backwards; rather market price action is always attempting to adjust to the perceived economic state 6 months from now. This often times explains why market prices are falling while economic data promises and shows continued strength. Now the big question on most investors minds is where to from here? Get my take below in this week's Weekly Round-Up. Short Market Sound Bites: • Some say the biggest risk is the Feds….since Powell’s statement on Oct 3rd when he said that they had a way to go before reaching a neutral fed-funds as evidenced by the market reaction to his comments back then we saw the large move lower for the past month taking over 2.4 Trillion of dollar value out of the US markets…This past Friday’s dip followed a 3 day rally of 3.84%, the best in a few years…on the good news front we are also in the strongest seasonal period for the US markets as we move thru to the end of the year… • We are currently seeing more Volatility in individual stocks vs market indexes yes on bigger moves higher in markets are not showing many stocks participating in the moves…this all suggest more downside can be expected as overall market breadth remains weak… • On Friday we got very good Labor and Jobs Data showing a 250K rise in payrolls with employment remaining at 3.7%, numbers showing solid results…this put the “Good News is Bad News” back on the forefront on the fear this could force the Feds to continue in their interest rate tightening process…The Feds are expected to raise rates 4 more times thru 2019 while the Bond market is only pricing in 2 more rate hikes…going forward US Economic Data will create the potential need for more or less hikes and thus price action will react accordingly…current rates are 2% to 2.25% with a greater than 85% chance of a rate hike at the DEC 18-19 Fed mtg… • For the past week we’ve seen the Asian markets finish up higher on potential news of a US/China trade deal or at least positive movement forward…we’ve seen markets move over 500+ DOW points intra day on on/off/back on again China & US Trade Tariff news… • Often there are no clear explanations for price action behavior which simply reflects day to day Fear & Greed…this is similar to the statement made an eminent 19th Century Diplomat aboard who sent a cable back to his Monarch that said, “Situation Hopeless, but not serious”… • Consumer Confidence hits 18-year highs despite market drop showing there is not as much fear in markets as this past Feb drop…keep in mind that before the 2007 market implosion Consumer Confidence was also at highs… Here is my current take on market price action:
