Stocks are expected to break out to new highs, barring any errant presidential trade tweets

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The stock market is itching to make new highs, and it may soon, as long as progress continues to appear to be made on the trade war front.

Technical market analysts, who watch stock charts, see an opportunity for stocks to break above previous highs, after therose above its 50-day moving average last week and crossed above August highs, two signals of positive momentum.

September has started off on positive footing after August's decline. Usually a weak month, the S&P 500 was up 1.7% so far for September, as of Monday morning. He said the market is still reacting to last year's sell-off, and is now in a position for a move higher. "When it's done raining, it's still wet outside, and that's what we had in 2019. The storm was in 2018 when we had the big downturn in December," Wald said. "2019 has been base building... It was our case there would be a shakeout summer."

"It does seem, since the Trump tweet [on trade] in early August...the biggest thing that's changed since then is the global economic reports have gotten better on average," said Pauslen. Paulsen said he has been watching economic surprise indexes, and they are rising globally. The indexes measure beats against misses on economic data, and when they are positive it is perceived as good news for the stock market.

But he cautions that if the yield curve does not steepen and is inverted that could undermine investor confidence, since it is a recession warning. The yield curve is inverted when short term intrest rates are higher than long duration rates. He said the Fed should cut rates by 50 basis points to help the process.

"Cyclicals/Defensives flows, price relatives and Value/Growth valuations all look stretched, with Banks in particular trading significantly below what peripheral spreads would imply," noted the J.P. Morgan strategists in a note. "We have argued last week that a turn in sector leadership is upon us, especially if bond yields inflect higher, where Cyclicals and Banks should be favoured into the year-end.

 

ขอบคุณสำหรับความคิดเห็นของคุณ ความคิดเห็นของคุณจะถูกเผยแพร่หลังจากได้รับการตรวจสอบแล้ว

Embarrassing content.

CRASH Coming!

frankmottek This is a remarkable tweet, on so many levels.

Thats the playbook. New highs, then he can tweet. Or this time it's different......... 👍👍👎

It's very strange the things that traders need to worry about these days.

I guess Obama was responsible for a stagnant stock market that has only soared since Trump was elected. Thank You DJT.

Tomorrow will be a dumpster fire

What are you talking about? Every software companies is down 25 to 30% in the last few weeks.

No President would ever be so irresponsible enough to say anything that would jolt the markets. That's crazy talk.

Chances of that are roughly 0%

What progress is being made on the trade war that justifies new highs in equities ? Did we miss something?

Your bias continues to show!!!

brandonspikes55 Depends on how many of his friends have shorted the market. Need to take away his phone!

Hard to see a break out with small caps $IWM looking like this...

This is what passes for price discovery now...

hopium can only be stopped when authoritative figures step in... but until then 💉💉💉🥴🥴🥴

So... The trade war is making stocks reach record highs?

Which means we will have a pullback because the President will issue some ridiculous Tweet at some point.

Strong sell signal.

เราได้สรุปข่าวนี้มาให้อ่านอย่างรวดเร็ว หากสนใจข่าว สามารถอ่านฉบับเต็มได้ที่นี่ อ่านเพิ่มเติม:

 /  🏆 12. in TH

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