1/7/2019 – A positive day with the Dow Jones up 98 points (+0.42%) and the Nasdaq up 84 points (+1.26%)
Having fun yet? As we have been saying, the stock market remains at an incredibly important juncture. Things are about to accelerate in an unexpected way. If you would like to find out what happens next, based on our timing and mathematical work, in both price and time, please Click Here.
The Dow is up 1,600+ points since our clearly identified bottom at our December 27th (+/- 1 trading day) TIME turning point. Some investor sentiment is arguably up infinitely more. So much so that some investors believe the bottom is in and that a massive rally is a sure thing.
S&P 500 will climb 15% in 2019 — here’s what to buy now
For anyone who owns stocks, the holiday season was pretty grim. But that’s behind us, and now it’s time to deploy the rest of any buying power you may have. Or put on a little margin if that’s the only way to increase exposure to stocks at this point.
The reason: The bottom is in, and 2019 will bring a 15% rally in the S&P 500 — or better. How do we “know” the bottom is in? Of course, no one can know this for sure. But that’s what the weight of the evidence suggests. Here are five reasons why.
Well then, I sure hope these guys are loading up on call options.
It can be argued, at least fundamentally speaking, that last week’s rally was caused by Jerome Powell crumbling under Trump’s pressure and appearing more “Dovish”.
Here is why that might not be the case.
Powell Goes Dovish… But It’s Too Late to Change Anything
Stocks roared higher last week when Fed Chair Jerome Powell did a complete 180 and proclaimed some of the most dovish statements in Fed chair history.
Not only did Powell suddenly claim he was “listening to the markets,” meaning he was worried about the drop in stock prices, but he also suggested the Fed is completely open to changing the pace of its rate hikes and balance sheet normalization.
To be clear: Powell has finally realized that Fed policy was blowing up the financial markets.
Unfortunately for him, it’s too late. And while the DUMB money is buying into the stock rally, the smartest, most liquid market in the world isn’t buying it for a second.
I’m talking about the currency markets.
In other words, it is probably not a good idea to assume with 100% certainty that any sort of a tradable bottom is in.
Luckily, you don’t have to guess. If you would like to find out what the stock market will do next, in both price and time, based on our timing and mathematical work, please Click Here
