Week In Review: A Manic Depressive Market In Search Of A Therapist Couch
In what was a fit of rage by the markets in the face of an FOMC that didn't whisper sweet enough nothings into the ears of investors, followed by a Tweet happy President announcing major economic policy decisions on a whim, the markets experienced their worst week of 2019. For readers of this online diary, the market weakness shouldn't have been a surprise as the past two weeks have been a persistent exercise of telling investors of this outcome. Here are the titles of the notes posted over the past two weeks: July 20th - The Market Just Posted A Sign On Its Front Porch Saying Beware Of Dog July 21st - Week In Review: Textural Changes Of A Subtle Nature Bearing Serious Consequences July 23rd - How Much More Ammo Can The Market Waste? July 24th - SOX Faces A Reinforced Brick Wall Of Resistance At 1640 July 25th - A Negative Confluence Of Events July 29th - Is It Time To Go Full Rambo On The Markets? July 30th - Earnings Exhaustion One of the primary theories presented here in recent weeks was the negative nature of the SOX moving up while the rest of the market simply sat on its hands watching. This created a precarious situation. When the SOX goes parabolic while the market lags, the violence of the reversal on the downside when absorbing the gains will cause the remainder of technology fits as a lagging market is indicative of underlying weakness to begin with. The SOX was down close to 7% for the week. With a confluence of negative fundamental events from uncertainty about rates to trade war fears, the SOX retracing a parabolic run predictably added to the fury on the downside. There was, however, one small glimpse of hope during the latter half of trading Friday. The S&P made a valiant effort to save 2940 - a level that was discussed extensively here last week - in the last hours of Friday's trading. In fact, it got rejected right at that level in the last couple hours of trading, closing at 2932 for the week. This type of glimpse, we can call it, into the intentions of the market shouldn't be overlooked. It was very easy for the market to completely lose it on Friday with the negativity from both a fundamental and technical perspective. Yet the markets found a way to close well above the lows. This sets the week ahead to be nonconformist in every way possible. This simply means that investors should expect every type of head game that the markets can conjure up to be thrown at...
Week In Review: Earnings Swings, Financials, Gold, GRUB and SNAP
Here's how we are looking at the markets after this past week. In no particular order: As reported this week, Warren Buffett loves Bank of America and there is a high likelihood that you should too. To be fair, BAC has been a recommended position in conservative portfolios for our Turning Points Premium Service so there is some partiality at work here. Nevertheless, financials as a sector are in possession of numerous attributes that can create a virtuous cycle of epic proportions into the the end of 2019. It's a sector that is a no-brainer type of opportunity over the long-term given the way everything from the macro to the micro has lined up. If there is further bullish momentum this week, especially following the FOMC meeting, there are going to be a lot of bears throwing in the towel. The negative potential catalysts are disappearing by the day. At the end of this week, assuming the market remains pinned at or near its highs, both negative potential catalysts from the Fed and earnings will be eliminated, leaving bears wondering what they have to pin their hopes on moving forward. A come to Jesus moment awaits. Gold has a place in every investors portfolio at this moment in time. Not for the short or intermediate term, but rather for the very long-term. Global central banks are guaranteeing a positive outcome for gold over the next several years. GRUB reports this week. This is going to be widely watched report given the competitive threat GRUB has faced from names such as DoorDash and Postmates. Expecting very good things, as Zenolytics previously outlined how GRUB has nothing but upside into the second half of this year. After releasing earnings this past week it has become clear that KKR is now a growth stock trading at 10 times forward earnings with a 2% dividend yield. The company is printing money as investors are throwing capital at them in desperation for returns from a trusted source. The company grew earnings by 36% year over year. Fee generating assets under management are growing by double digit percentages on a sequential basis. After releasing earnings this past week, it has become clear that SNAP is well on its way to a full recovery of its post-IPO disaster, getting closer to Zenolytics target price of 100% upside from the recommended price of $11. The SNAP of 2019 is the SNAP that should have debuted in 2017. For one reason or another, whether related to hubris, greed or otherwise, the company decided to go public before they had a viable revenue growth strategy. That decision has become...
5 CHARTS REVEALING THE HOW AND WHY OF A RALLY TO NEW HIGHS INTO YEAR END
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4 CHARTS DEMONSTRATING BOTH DESPONDENCY AND HOPE FOR THE WEEK AHEAD
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5 CHARTS DEMONSTRATING A MARKET THAT IS GETTING READY TO RIP DURING THE SECOND HALF OF THE YEAR
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5 CHARTS SHOWING WHY A SYMMETRICAL MARKET IS A HEALTHY MARKET
The following charts demonstrate how symmetrical this market remains. A symmetrical market is generally a healthy market. It is only when symmetry begins to break down and chaotic price movement becomes the norm that significant reversals take place. click chart to...
4 CHARTS THAT WILL RESCUE YOU FROM THE JAWS OF MEDIOCRITY IN THE WEEK AHEAD
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4 CHARTS THAT WILL MAKE YOU COMFORTABLE WITH CHAOS FOR THE WEEK AHEAD
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