Our Current Market Outlook has changed to a yellow light with the “Uptrend Under Pressure” based on 4 Distribution Days (professional selling) on the Nasdaq in the past 7 trading sessions, and a new first-stage, technical “sell” signal flashing today. (We utilize a propitiatory “sell” signal system which features three-stages of increasing risk)
After the markets close today, a few technology titans (Amazon, Google- aka Alphabet, Microsoft, etc.) released earnings news that was received well by Wall Street and sent their share prices soaring. As a result, tomorrow is likely to be a positive day. Currently the markets are at a crossroads with a great deal of attention being given to the possibility of tax reform. Even today the House voted to approve their version of a tax cut package. While lower taxes would be good for the economy, and thus for the markets, the risk of no tax cut deal being struck by Thanksgiving is real and would likely cause a sell-off in most stocks. While we have raised the level of cash in a few of our strategies this week on profit-taking and mild defensive posturing in response to the 1st stage “sell” signal above, we remain constructively bullish and continue to seek opportunities to grow our clients capital while the trend remains up. Enjoy the autumn colors and have a Triumphant day!