"Smart Money" Buyers are Helping the Market to Firm Up

Excerpt from Louis Navellier's Marketmail - 1/8/2019

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Trading volume has been gradually improving, now that the holidays are over. I was encouraged that when the stock market initially sold off early Wednesday, the “smart money” quickly materialized and helped the overall stock market to stabilize. This smart money has been appearing predictably during down trading days for the past three weeks and is certainly helping the overall stock market to firm up.

Unfortunately, after the market close on Wednesday, Apple (AAPL) lowered its fourth-quarter sales forecast, blaming China for its lower-than-expected trade growth. As a bellwether stock, Apple’s lower guidance naturally spooked many other technology stocks. The truth of the matter is that approximately half of the S&P 500’s sales are outside of the U.S., so investors are increasingly concerned that other multinational companies may also lower their fourth-quarter sales guidance, due to slowing global GDP growth and eroding foreign currencies. Here is a link to my Thursday podcast that discussed these topics.

Navellier & Associates owns AAPL, NFLX, and LULU and does not own Ford in managed accounts and or our sub-advised mutual fund. Louis Navellier and his family own AAPL, NFLX, and LULU and does not own Ford via the sub-advised mutual fund. Louie Navellier & his family own AAPL and NFLX in a personal account.

In This Issue of Marketmail (Click Here to Read)

Bryan Perry likes Jerome Powell’s conciliatory script from last Friday, but he still prefers the safety and income of REITs in 2019. Gary Alexander looks back in history 25 to 200 years ago for those who think America has insurmountable problems today. Ivan Martchev thinks Apple’s recent decline reflects the economic slowdown in China and the general slowdown in global growth. Jason Bodner shares some very good news about past recoveries following long periods of depressing down days like we’ve seen lately. Then, I’ll close with the latest news on sinking Treasury yields and Friday’s robust jobs report.

Income Mail:  

Taking Stock of the New Year’s Bounce 

           By Bryan Perry

REITS Look Attractive for Income


Growth Mail:  

Memo to Those Wimps Who Think These are Hard Times

           By Gary Alexander

Crazy Bloggers and Negative Media Cause Sane Investors to Sell Stocks


Global Mail:

Apple Didn't Tell Us Anything New About China

           By Ivan Martchev

Don't Blame Trump for China


Sector Spotlight:

Press Releases (Pens) Move Markets More than Wars (Swords)

           By Jason Bodner

A Happy Ending for a Sad MAP-IT Ratio


A Look Ahead:

The Biggest (Ignored) News is the Decline in Treasury Yields

           By Louis Navellier

The Jobs Report (and the Fed) Lifted the Market on Friday