After the recent pounding in the heretofore unstoppable tech stocks over the past several days, the stock market bounced higher Tuesday on a welcomed pick-up in trading volume. While our Current Market Outlook remains “Uptrend Resumes” with a green light, due to recent unusual price weakness in key leading stocks investors should become more selective when deploying new capital. Any new equity buys should be directed towards companies that sport high institutional conviction. Keeping your losses small, ideally between 5% or 8%, is also of particular importance.
Tomorrow the Federal Reserve Board will announce their interest rate decision at 2pm EST. What will be of more importance for most investors will be the comments regarding the number of rate hikes yet to come in 2018. The market is undergoing a “rotation” away from tech stocks somewhat and towards energy & value names. While there are many possible threats facing stocks at the present, all well documented by an obviously biased media, a significant move to the upside is becoming more possible. A strong positive catalyst would likely create a buying stampede that would catch many investors napping (or hiding) due to the media headlines. In short, the next 4 weeks will be very telling. If you feel we can help bring some clarity and discipline into your investment process, please feel encouraged to call us and schedule an appointment. Have a Triumphant day! ®