Hey everyone, stop me if you have heard this before, but this past week we made new all-time highs against a global scene of unrest and risk while political fisticuffs increase domestically here in the US. As we round out this year markets are setting records every week while a good deal of cash still remains on the sidelines. This in turn, will give the bulls a bit more boost forcing cash back into the markets as we move higher….
Sound Bites:
• Hey guys, stop me if you have heard this before, but the US Indexes are all making new all-time highs against a backdrop of domestic political fights and increasing geo-political tensions! This past week the DOW crossed the 28,000 threshold as we also new all time highs in both the NASDAQ and the S&P…the Russell is the only trailing Index having last made all-time highs over a year ago…
• I have told our members in our User Group that we had 3 legs of a bar stool that needed to support higher prices; Better than expected Q3 Earnings, a supportive US Fed and inking some type of “Phase I” US China trade deal….so far we can check off two of these legs and now all we wait in is the conclusion of “Phase I” of this trade deal…I have been talking about this for over a few months suggesting to our members to lean bullish as we round out 2019 and move into 2020…we have thus far done very well…
• With low interest rates, subdued inflation and the US FEDs already on record as stating they will need to see extraordinary circumstances in order to raise rates the markets have essentially been given another Goldie Locks market environment…and let’s also not forget the new money the FEDs are pumping into the markets now (over $128B in less than 60 days) continues to push asset prices higher…the markets have already priced in a more accommodative FED with the Fed Fund Futures pricing in a only a 50% chance of a rate cut for 2020…
• With all of this as a back drop as the US Markets continue to make new all-time highs we are seeing the Global slowdown scenario starting to shift more to a bottoming process and a shift to stabilization with fears of a recession moved further out in time…again, all of this is more supportive of price action moving higher…Keep in mind we still have a lot of tensions all over the globe that could quickly change this narrative and one wrong move by China regarding Hong Kong protests, or a bad policy decision by President Trump could send price action into a solid move lower…and it is this tension that has kept money on the sidelines and out of the markets…this gives the markets a higher probability of a near term bullish move…
Enjoy this Weekly Round-Up Below:
Don’t Be Rat Brain – Be the Red Strip Zebra !!
Trade Smart !
hpb
