Wednesday, November 21, 2018

Market Alert - Last Hour

Up, but a rather weak, rather tepid bounce into the Thanksgiving holiday and half session Friday, fading some in the last hour.

SP500 12.44, 0.46%
NASDAQ 74.43, 1.08%
DJ30 36.32, 0.15%
SP400 1.22%
RUTX 1.37%
SOX 0.58%

Definitely does not look like a big new surge, but there is more of the same action as shown Tuesday: recent leaders give back ground in personal products, drugs, food while tech, chips find bids to bounce them off the lows. Chinese stocks continue to look good.

Existing home sales, October showed the largest decline since 2014. Coupled with the dump in builder's sentiment, the housing industry is calling for the Fed to knock it off before things get really out of hand downside. The financial stations continue talking of economic headwinds and slowing as the roadblocks for stocks. Sure they are, in the form of the Fed, trade issues -- the same items here all along that remain issues. Thing is, we could handle getting the trade aspect where we want without much issue if the Fed would work with the administration toward that goal. Oh yes, that is going to happen.

Thus, stocks head into the holiday with a solid bounce on the growth indices (NASD, SP400, RUTX), DJ30 fighting to stay positive into the close. This pullback in the recent leaders likely opens the door to new entries next week when the buying pattern reverts to the 'slower growth ahead' theme. E.g., PG is staging a nice pullback and may give us an entry to play a move to 100. How exciting . . . BUT, making nice money on these options is indeed quite nice. That said, we are thinking about going ahead and picking up some QIWI positions as it shows good volume though it is pulling back off the highs late.
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Jon Johnson, Chief Market Strategist
InvestmentHouse.com

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