Another week gone by and there is a lot of market news and price action to discuss.
In this week’s weekend market outlook we will discuss several topics, including seasonality and volatility. Below is a summary of what’s in the video below. Please feel free to comment or hit us up with any questions.
Market Outlook & Video (August 18):
Stocks in multiple indexes breaking out to new highs. Different indexes help to confirm each others’ breakouts. Prior instances of new ATHs after 6 month period or more without one show good returns going forward.
– The Market Outlook charts show strong bullish patterns for S&P and Russell. NASDAQ catching up. Dow still lagging.
– Heikin Ashi weekly candles show bullish pattern for S&P 500. Already easily trading above next week’s candle’s HA open.
– MACD and Stochastic rising above their moving averages. Stochastic in overbought territory again.
– Volumes and trading ranges match expectations for bullish trends and maintain same expectations going forward with S&P trading near 4-week highs.
– Fed Chair Powell helping markets with gradual pace of rate hikes. FOMC member Bullard mentions that he’d be done with rate hikes as of today. Very dovish remarks from Fed heads.
– Yield spread falling below 20 bps. Last time we had this pattern, stocks rallied 26.5% over 2-year period. As well, long-term yields falling with head and shoulders pattern and MACD divergence of 50- and 200-day MAs.
– Our daily trade idea: Netflix (NFLX). See our chart below and analysis in the video!
Netflix (NFLX) – Daily Trade Idea
Twitter: @davidsettle42 and @Market_Scholars
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
