Special Bulletin: April 16, 2020

The Waiting May Be Over

The massive amount of rapid US Govt. stimulus and backstopping assurances have been making themselves felt in the stock market over the past few weeks. Good news has come from the President’s Administration, the Fed, the Treasury Dept, and Congress in the form of stunning measures designed to infuse cash into our economy and stave off a depression. Those cash infusions are now north of $7.2 trillion by our count.

As a result of the markets improving internals, our Current Market Outlook has been upgraded to “Market in an Uptrend” with a “green” light. Three of our Core Four indicators are green, while 1 remains yellow, creating a net green condition. 

While the banks have been spoiling the Q1 earnings season thus far, technology and healthcare names have taken the leadership role. It’s hard to envision a market that can run up much further without these three key industries being in sync. We are truly witnessing a bifurcated market.

What can an investor do now? Keep your head about you. Do your homework and be diligent when committing new capital. The green signal should confirm more demand for equities in the near future, but is not a guarantee of a prolonged bull market. Monitor your holdings and maintain a watch list of fundamentally & technically superior stocks and ETF’s.

Have a Triumphant day! ®