Weekend Stock Market Outlook

Stock Market Outlook For The Week of
January 7th = Uptrend


20/50 Day Moving Averages: Uptrend
Price & Volume Action: Uptrend
Objective Elliott Wave Analysis: Uptrend


U.S. markets had a great start to the new year, and continue their uptrend into the second week of 2018.

All the market indexes remain above their 20 and 50 day moving averages.


2018-01-07-US Stock Market Averages

No change in the price and volume action, which still indicates an uptrend. A few stocks continue to work through short bases, but overall, proper set-ups for growth stocks are hard to find and and income stocks remain overvalued.

Tony hopes to be back soon. In the meantime, he's updated a few charts, and OEW remains in an uptrend.

Believe it or not, this is a difficult time to be an investor. With most stocks on the rise, it can be hard to stick to rule based investing. Many stocks sit on your watch list but don't meet your criteria...and then you have to watch as their prices fly higher.

What do most people do? Usually take more risks because they fear missing out; risks like increasing position size, buying without proper bases, overlooking poor fundamentals, taking out a mortgage to buy bitcoin, etc.

Don't be most people; stay the course. Rules are meant to protect your money...it's "safe" investing after all. To that end, if risks are high, I decrease my planned position sizes to compensate (by lowering the amount of risk per trade). So once we have a proper correction, I expect to see some good entry conditions, at which point I'll consider readjusting my position sizes.

If you find this research helpful, please tell a friend. I share articles and other news of interest via Twitter; you can follow me @investsafely. The weekly market outlook is also posted on Facebook and Linkedin.

You can check out how well (or poorly) the outlook has tracked the market using past performance estimates:

For the detailed Elliott Wave Analysis, go to the ELLIOTT WAVE lives on by Tony Caldaro.  Charts provided courtesy of stockcharts.com.