Excerpt from Louis Navellier's Marketmail - 11/27/2018
The good news is that the Dow Industrials, the S&P 500, and the NASDAQ Composite have ALL successfully retested their lows. The bottom line is that all these retests occurred on relatively light holiday-week trading volume, so I believe that most of the selling pressure has been exhausted.
I must add that sometimes the stock market likes to retest recent lows multiple times, as the S&P 500 did back in March, April, and May after the early February sell-off. As I mentioned on both my Monday and Tuesday podcasts last week, as soon as the Fed announces that it may postpone raising interest rates, the Dow Industrials may explode by at least 1,000 points quickly. (Here is a link to last Tuesday’s podcast.)
Looking forward, I expect dividend growth stocks to lead the market recovery. I also expect that stocks which can sustain strong sales and earnings momentum will emerge as the market leaders, but the most encouraging thing I’ve seen is all major indexes retesting their lows on light volume this past week.
I hope you had a wonderful Thanksgiving weekend!
After a tough week, our authors take a fresh look at market risks. Bryan Perry takes a new look at the three “speed bumps” he previously reviewed, plus the corporate debt spreads. Gary Alexander sees a bright spot in consumer spending plus corporate earnings and record profits, while Ivan Martchev sees some hope coming out of next weekend’s Buenos Aires G20 summit, if Trump and Xi reach an outline of an accord. Jason Bodner can’t name a new leading sector yet, but he can confirm this market remains in a bullish oversold condition. In the end, I give my view on what kinds of stocks can lead the next recovery.
Bulls Facing Three Big Speed Bumps – The Fed, Trade, and Italian Bonds
By Bryan Perry
What’s Up with Corporate Debt Spreads?
“Black Friday” Turns a “Red” Week Green
By Gary Alexander
“Peak Earnings Season, Part IV” Soon to Debut on Screens Near You
Reverse Seasonality in Action
By Ivan Martchev
The China Factor
Nowhere to Hide Among All 11 S&P Sectors
By Jason Bodner
The Market Remains in (or near) “Oversold” Territory
A Look Ahead:
Which Stocks Will Lead us in the Next Recovery?
By Louis Navellier
The Economy – Especially Housing – Has Slipped Recently