Week-In-Review: Investors Gobble Up Stocks; Best Month Since June

Categories

7-Day FREE Email Course

Do You Know The Most Under-Valued Stocks In The Market?
 Our Members Do. Take a FREE TRIAL – CheapBargainStocks.com

Week-In-Review:  Investors Gobble Up Stocks; Best Month Since June

The market rallied nicely last week and hit another record high as investors gobbled up stocks during the shortened holiday week. In the short-term, the market is extended and way overdue to pullback. The inability for the market to pullback in a meaningful fashion illustrates how strong the market is right now. The next areas of support to watch are the 10 DMA line, 21 DMA line then the 50 DMA line. Until the 50 DMA line breaks, the bulls are in clear control of this market and weakness should be bought, not sold. 

Monday-Wednesday’s Action:

On Monday, stocks rallied nicely helping the S&P 500 and the tech-heavy Nasdaq hit fresh record highs. The buying came in without any “major” news just that the bulls showed up and, once again, defended the short-term 10 DMA line (which has served as support in recent weeks). Stocks rallied on Tuesday after Best Buy led retailers higher after reporting earnings. The electronics retailer vaulted above resistance and broke out of a long base. On Wednesday, stocks rallied nicely and hit new highs ahead of Thanksgiving. After Wednesday’s close, President Trump took a step to help the Hong Kong protesters which was not viewed well by China. 

Thursday & Friday Action:

On Thursday, the stock market was closed in observance of Thanksgiving. Stocks were quiet on Black Friday as consumers flocked to grab the latest deals. Early readings showed that Black Friday sales jumped by 19% as of 9am EST on Friday which bodes well for both Main Street & Wall Street. Friday was the last trading day of November. 

Market Outlook: Easy Money Is Back

Once again, global central banks are back on the easy money bandwagon after the Fed and the ECB both announced more easy money measures directly aimed at stimulating global markets. The market has soared all year based on two key points: optimism that a trade deal will be reached between the U.S. and China and more easy money from global central banks. Earlier this year, the Federal Reserve reversed its stance and moved back into the easy money camp. Then, other central banks followed suit and that means easy money is back to being front and center for the market. Separately, the trade talks are moving in the right direction which is another positive. As always, keep your losses small and never argue with the tape.

Do You Know The Most Under-Valued Stocks In The Market?
 Our Members Do. Take a FREE TRIAL – CheapBargainStocks.com

7-Day FREE Email Course

HURRY!

Get This FREE e-book!