Profit Taking Likely, But Underlying Tone Remains Positive!

November 27th 2022 |

Key Takeaways

  • Profit taking increasingly likely on a short-term time perspective
  • However, quality of the current short-term-oriented uptrend still looks quite high
  • No reason to change our strategic bullish outlook for the time being

Market Review |

In line with our recent call, U.S. stocks finished the holiday-shortened week with stronger gains. The Dow Jones Industrial Average increased 1.8% during the week to finish at 34,347.03. The S&P 500 added 1.5% in the same timeframe to finish at 4,026.12. The Nasdaq gained 0.7% from last Friday to close at 11,226.36. Most key S&P sectors ended in positive territory for the week, led by the materials sector. Discretionary and comm. services were the only losers. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, closed at 20.5. Read More

Healthy Breather in Place – Expect Further Upside Afterwards

November 20th 2022 |

Key Takeaways

  • Recent consolidation period looks healthy in its nature
  • Quality of the current short-term-oriented uptrend looks quite high
  • We stick to our strategic bullish outlook

Market Review |

U.S. stocks finished the week mostly lower. The Dow Jones Industrial Average closed at 33,745.69 and ended the week roughly where it started (0.01% lower). The S&P 500 edged 0.7% lower for the week to finish at 3,965.34. The Nasdaq closed out the week down 1.6% to end at 11,146.06. All three indexes are positive for the month, however. Among the key S&P sectors, staples were the best weekly performer, while the discretionary sector dragged the most. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 23.1. Read More

Recovery All Across The Board Indicates a Strengthening Trend

November 13th 2022 |

Key Takeaways

  • We upgrade our strategic outlook from cautious to bullish
  • New uptrend is establishing but expect high volatility
  • Short-term-oriented indicators critical to watch within the next couple of days
  • Time to get back into the market by building up exposure (especially on weak trading days)

Market Review |

The market was in bounce mode last week as all major U.S. averages posted strong weekly gains (mainly driven by a strong up-day on Thursday). Adding 4.1% on a weekly basis, the Dow Jones Industrial Average closed at 33,747.86. The S&P 500 finished at 3,992.93 and jumped 5.9% this week. The broad index closed out its best week since June. The Nasdaq rocketed 8.1% from last Friday’s close to end 11,323.33. It was its best week since March. Among the key S&P sectors, technology was the best weekly performer, while utilities dragged the most. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, dropped to 22.5. Read More

Bear Market Rally Has Come to an End

November 6th 2022 |

Key Takeaways

  • Seasonal and sentiment driven bear market rally has come to an end
  • Chances for renewed selling pressure are increasing
  • The current risk-/reward ratio still looks too low for a strategic bargain hunt

Market Review |

All major averages closed out the week with stronger losses. Ending four weeks of gains, the Dow Jones Industrial Average shed 1.4% over the week to 32,403.22. The S&P 500 booked a weekly loss of 3.4% to finish at 3,770.55. The Nasdaq slumped 5.7% for the week to end at 10,475.25. Both gauges broke two-week winning streaks. Most key S&P sectors ended in negative territory for the week, led by the comm. service sector. Energy was the best performer. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 24.6. Read More