Skip to main content

Weekly market wrap-up Nov 2

Indexes up about 2.5 percent for the week. Long-term trend on the chart for the SP 500 is still long.

Index Oct 26 Nov 2 +/- %
S&P 500 2658.69 2723.06 + 64.37 + 2.42%
Nasdaq 7,167.21 7,356.99 + 189.78 + 2.64%
DOW 30 24,688.31 25,270.83 + 582.52 + 2.35%


A short-term chart (60 min) indicates a sell on Oct 18 and a buy on Oct 31. However, the first sell signal on the 60-minute chart came on Oct 4 (not shown). At that signal, the SPY was at 290, and a new buy signal did not come until Oct. 31, after a drop of 31 points, or  nearly 11 percent. 



From Investor's Business Daily: 

The week left investors with three realities to consider.

No. 1, this pullback is resolving doubts in favor of the bearish interpretation. Consider how the nonfarm payrolls blowout was turned into a negative.

Jobs added came in at 250,000, about 30% more than expected and above the entire range of estimates.

The pessimists shifted their focus to wage gains and fears of inflation in order to stay negative.

No. 2, sound investing rules are proving their worth. On Thursday, stock action came close to a follow-through day. But close isn't good enough in investing. Wait for the stock market to deliver a legitimate confirmation.

Investors can congratulate themselves if they raised cash when the uptrend came under pressure Oct. 4 and raised more cash when IBD switched its outlook to correction Oct. 10.

The cash shouldn't come off the sidelines until a new uptrend is confirmed.

No. 3, pockets of strength exist. According to preliminary data, the cement stock group gained 12% for the week. This is a play on a possible House win for the Democrats in the midterm elections.

While Trump and a Democrat-controlled House could lead to gridlock, infrastructure is one area of agreement.

The midterm elections are on Tuesday.

Comments

Popular posts from this blog

The Hidden Agenda Behind the Global Warming Hysteria

Climate change activists are not just interested in reducing carbon emissions in order to "save the planet." Their underlying desire is to overturn capitalism and replace it with socialist governments worldwide. 

Our story starts with the IPCC, or the Intergovernmental Panel on Climate Change, a U.N. organization. "And any settlement of the Global Warming issue by the UN would entail massive transfers of wealth from the citizens of wealthy countries to the politicians and bureaucrats of the poorer countries." (1)

In 1992, at the first U.N. Earth Climate Summit in Rio de Janeiro, Brazil, Program Executive Director Maurice Strong stated, very candidly: 

"We may get to the point where the only way of saving the world will be for industrialized civilization to collapse. Isn’t it our responsibility to bring this about?" (2)

Former U.S. Senator Timothy Wirth (D-CO), then representing the Clinton Administration as U.S. undersecretary of state for global issues, join…

IRA Taxes: Rules to Know and Understand

Article from schwab.com


Individual Retirement Accounts (IRAs) can be a great way to save for retirement because of the tax benefits they can provide. If you’re eligible, you can choose a traditional IRA for an up-front tax deduction and defer paying taxes until you take withdrawals in the future. Or, if eligible, you might opt for a Roth IRA and contribute after-tax money in exchange for tax-free distributions down the road.


So, what's the catch? There are a few. If you run afoul of some of the IRS rules surrounding these accounts, the penalties can be quite stiff—all the way up to a disqualification and taxation of your entire account.

Ignorance of the law is no excuse, and with few exceptions, the IRS isn’t very forgiving of mistakes. Knowing the rules can help you navigate the many potential IRA tax traps you might encounter on your way to retirement.

Keep in mind that when we discuss taxes and penalties, we’re referring to those at the federal level. In most states, you will also…

Critical Financial Steps When Buying a Home

In my lifetime, I have bought six houses, and sold five. I currently live in the sixth, which was new construction, which was an adventure unlike purchasing an existing home, But the principles of buying a home are the same, whether you are purchasing a new home, or an existing home.

1. Understand why you want to buy a house
Purchasing a home is a major decision that shouldn’t be taken lightly. It’s important to define your personal and financial goals before proceeding. Think about factors such as whether you’re craving more stability, whether it makes sense financially and whether you’re prepared for the responsibility of maintaining a home.

You should explore some resources on Renting vs. Buying before you make the decision. I posted a article with a couple of good videos on this subject, and bankrate.com as an informative article here
2. Dig Into Your Credit Reports and Credit Scores Your credit score and history are the first things all lenders will look at to decide whether or …