Our Current Market Outlook remains as “Market in an Uptrend”. This signal tells growth investors that the current stock market environment is healthy and that investors can deploy capital into the market. Keep in mind the markets meaningful advance has come in the face of an interest rate hike by the Fed with more coming this year, very likely as soon as this month (March).
After a brilliant 4 month “Trump rally” in the popular indexes, the stock market currently shows an elevated level of risk. A moderate number of recent declines in higher volume known as distribution are still present. When distribution (professional selling) piles up quickly in the span of several days or weeks, markets can signal a top may be nearing. Due to the short relevance of a distribution day, a life span of only 5 weeks, a few may drop off of the current count by months end. The key technical point to watch for is if the market can avoid adding three or four new distribution days, replacing the ones that will drop off, prior to the end of this quarter.
Remain optimistic. The markets health is a good as it has been in 3 years. Having already responded positively to a Trump Presidency, investors will now focus on Congress and the “pro-growth” and “lower tax” initiatives they will propose. If those are received well, the market could continue to confound the pundits into May, or even early summer, and move higher. If they are not received well, the market will come under immediate selling pressure (profit taking) and will face its first real test since the “Trump bump” began.
Please check back to this page for future “current market outlook” updates.
Have a Triumphant day! ®
The information in this article is based on data obtained from recognized services and sources and is believed to be reliable. Any opinions, projections or recommendations in this report are subject to change without notice and are not intended as individual investment advice. Not to be used as legal or tax advice.
©2017 Triumphant Portfolio Management, LLC.
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