Saturday, November 17, 2018

Weekly Market Wrap

It was another volatile week for the stock market, with the major averages tumbling until intraday Thursday. The market uptrend is under pressure, which means investors should be cautious about new purchases.

I like the way Investor's Business Daily put it: "Stocks Survive An Annoying Week As Dow Jones Leads Friday." Annoying is right, as there was just no clear cut direction. 

Index Nov 9 Nov 16 +/- +/- %
S&P 500
- 44.74 - 1.60%
+ 159.03 - 2.15%
DOW 30
25,413.22 + 576.08 - 2.21%

While markets are down slightly this week, they are still slightly higher than their November lows.  If you wish to read some commentary about why the markets did what they did, you can read this recap.  But it's more about supply and demand, in my opinion. More sellers than buyers will drive down the market. 

Note on the chart below: Each low this year is a bit higher (blue arrows), a bullish sign. Yet, each high (red arrow) is struggling, a sign of weakness. The 13-day moving average has still not closed below the 34-day moving average. 
Click for larger version. Chart is from beginning of 2016.

In full disclosure, while I don't discuss or recommend individual stocks, mutual funds or ETFs, I am invested in the following issues: AT&T (T), Alps Alerian MLP ETF (AMLP), Caterpillar Inc (CAT), G-X Super Dividend REIT ETF (SRET), S&P 500 Utilities Sector SPDR (XLU), Energy Bull 3X Direxion (ERX), Direxion S&P 500 Bull 3X (SPXL), and Schwab US Dividend Equity ETF (SCHD). About 60 percent of my portfolio is in a Schwab money market fund (Cash). 

My overall investment strategy is income with growth.   

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