Weekend Stock Market Outlook
Stock Market Outlook For The Week of
December 15th = Uptrend
ADX Directional Indicators: Uptrend
Price & Volume Action: Uptrend
Objective Elliott Wave Analysis: Uptrend
No change in the stock market outlook; the uptrend remains in place.
There was no shortage of market moving headlines that could have impacted market prices; the results of the UK election, impeachment proceedings, a US Fed meeting, and some tweets about a Phase 1 trade deal between the US and China.
The end result was a 0.73% gain for the week.
2019-12-15 - SPX Trendline Analysis - Daily
2019-12-15 - SPX Trendline Analysis - Weekly
The U.S. and China confirmed a phase-one trade deal Friday. In the end, the U.S. agreed to reduce tariffs and Chin agreed to some agricultural purchases, but details are sktechy. Kinda felt like a big nothing-burger.
What didn't feel like a nothing-burger was the Fed chair's speech. Powell indicated the Fed may not raise rates through 2020...even if we hit or slightly exceed their inflation target (2%). Regardless of whether you agree with the target (many don't), or how it's calculated (many don't), this stance has big implications for retirees, those who use investments for income, and anyone trying to improve their finances. The search for yield will continue, which lays the groundwork for higher stock prices, more risk taking...as well as higher expenses.
Best to your week!
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Charts provided courtesy of stockcharts.com.
If you're interested in learning more about the relationship between price and volume, or how to find and trade the best stocks for your growth strategy, check out this book on Amazon via the following affiliate link: How to Make Money in Stocks: A Winning System in Good Times and Bad. It's one of my favorites.
For the detailed Elliott Wave Analysis, go to the ELLIOTT WAVE lives on by Tony Caldaro.
Once a year, I review the market outlook signals as if they were a mechanical trading system, while pointing out issues and making adjustments. The goal is to give you to give you an example of how to analyze and continuously improve your own systems.
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