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November 30, 5:00 pm EST As we close the week and month, let’s take a look at some key charts. Stocks have now bounced 5% since last Friday. And that bounce was technically supported by this big long-term trendline we’ve been watching … |
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And, as of this week, stocks now have the additional fuel of a more stable outlook for interest rates. |
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The surge above 3% on the ten-year yield sustained that level, even in the face of a stock market decline. That signal created fears that the Fed might be on course to choke-off economic momentum. But that has now been quelled by the Fed’s clear signal this week that they are near the end of their rate normalization program. The 10-year ends the week well off the highs of the past two months, and at the important 3% level. The dramatic adjustment lower in oil prices should also be additional fuel for stocks … |
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An overhang of risk to global markets has been the potential for sanctions on the Saudi government. But the issue seems to be now settled, with the sanctioning of Saudi individuals which do NOT include the Saudi Crown Prince and/or government. And as we’ve discussed, Trump has used the leverage over the Saudi Crown Prince to influence oil prices lower (for the moment). With that above in mind, stocks finish the week well bid. If we can get at least a standstill agreement on the U.S./China trade war from this weekends meetings between Presidents Trump and Xi, that may be enough to fuel a melt-UP to new highs on stocks by the end of December. It may be time for Trump to get a deal done, and solidify economic momentum to get him to a second term, where he may then re-address the more difficult structural issues with China/U.S. relations. What stocks do you buy? Join me here to get my curated portfolio of 20 stocks that I think can do multiples of what broader stocks do, coming out of this market correction environment.
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