July 20, 2019
Weekly Market Outlook
By Keith Schneider
Despite the attention grabbing headlines of the S&P 500, NASDQ100, and the Dow industrials all hitting new all time highs early this week, stocks closed down by Friday and the Dow (DIA) had a bearish engulfing pattern. Geopolitical tension and a slowing global economy were contributing factors.
Risk gauges backed off to neutral. The take away is what appears to be true may not be reality. Equity markets are behaving more like an adolescent than a mature adult, unable to perceive the truth but that could change on a moments notice.
Gold and Gold miners led the charge with GDX ( Gold Miners) up almost 7% on the week. Also noteworthy is that market internals that had been strong, retreated quickly into negative territory.
High yield debt also retreated versus the safety of US government bonds, indicating risk off. This is a serious concern as over 12 trillion dollars of sovereign debt has a negative yield. The big question is why aren’t players willing to take on some debt risk as equities hit new highs.
This week’s highlights are:
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For this week's video click below.
Best Wishes for your trading!
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