Excerpt from Louis Navellier's Marketmail - 12/18/2018
Let’s start with the good news. The Dow Industrials, the S&P 500 and the NASDAQ Composite all made new intraday lows last Monday. However, many leading NASDAQ stocks quickly rallied on Monday, helping most market averages rally intraday. Subsequently, the stock market opened strong on Tuesday, only to consolidate later. Then, Friday represented the fourth retest of the lows, on light trading volume.
Interestingly, after the February 5 lows, the stock market also had to retest those lows four times on light trading volume for the Dow Industrials and the S&P 500 (the NASDAQ Composite only retested twice). Just like now, it took about three months – until the end of April – for the retests to be exhausted.
The bottom line is that the stock market is “bouncing along the bottom” and systematically exhausting all the selling pressure. As long as there is no panic selling on high trading volume, we should not worry and use these dips as potential buying opportunities. I should also add that on recent selloffs, there has been relative strength in many leading NASDAQ stocks under the surface, so there is likely quite a bit of “smart buying” going on from bargain hunters, as well as companies buying back their own shares.
Bryan Perry cites slower growth in Europe and China for causing much of the current market malaise. Both Gary Alexander and Jason Bodner take a fresh look at U.S. market metrics, but they start off with some humor, since market metrics don’t seem to matter to traders these days! I can sympathize, since my column covers how news headlines push the market up and down day to day more than the fundamentals (which don’t change that rapidly). Ivan Martchev wraps up his 2018 predictions on the dollar vs. gold, along with his views on emerging market currencies and Fed policy decisions, and I handicap what might happen tomorrow if the Fed raises rates, but gives us some clear hope that they may be done for now.
The Nuts and Bolts of the Current Market Landscape
By Bryan Perry
The Global Grinch Stole the U.S. Santa Claus Rally
The Keystone Kops are Running Most Major Governments Now
By Gary Alexander
The Market is Fixated with Politics & Disengaged from the Economy
A Good Year for the Dollar
By Ivan Martchev
Big Week for the Fed
All Joking Aside, This Market Will Recover
By Jason Bodner
Believe it or Not, The Tech Sector is Still Positive Year-to-Date
A Look Ahead:
The Market Isn’t Paying Much Attention to the Fundamentals These Days
By Louis Navellier
Sharply Falling Prices Should Put Pressure on the Fed to Leave Rates Alone