Momentum Monday – Did We Bottom in December?

Today was a much better day to panic!

Here is today’s Momentum Monday episode where Ivanhoff and I walk through the markets and the new leadership emerging. Ivanhoff is in Bulgaria with the blinds drawn as usual. His hot hand continues, nailing swings from the long and short side. Hope you enjoy.

As always, I make the show but inevitably have extra thoughts from the discussion.

Here goes…

If you are reading this you survived the crash of December 2018. If you like reading this, you still actually like to invest. That’s a good thing. That was a brutal spell.

Even with all the excitement of this sharp rally, we are just back to November 2017 prices for the Dow and S&P.

What do we know now that we did not know in November 2017?

1. Democrats rule the House.
2. Fat Nixon is still fat.
3. Apple and Facebook are relatively weaker than the Dow and the S&P.
4. Juul is a tobacco company.
5. Parts of the federal government are shut down.
6. Tariffs on the rise
7. Trade wars in progress
8. ISIS may or may not be defeated and we may or may not be leaving Syria
9. Indictments galore at the White house
10. Goldman Sachs is a criminal organization…ok well we knew that in 2010, 2011, etc…

If you knew all that in November 2017, you might have happily sold and chilled out in cash in 2018. An incredible 93 percent of assets had negative returns in 2018.

So what is next?

As I said to open this post, today was a much better day to panic if you hate stocks and the correction could easily return tomorrow.

The markets are fast approaching downward sloping moving averages…

I am enjoying this melt-up while it lasts and am thrilled to see some stocks hit all-time highs (Twilio and ETSY are my strongest), but earnings season starts next week. We will know a lot more when we see how the markets react to all the misses, excuses and complaining that Fedex and Apple have set the tone for.

Have a great week.

As a reminder, Marketsmith (by Investor’s Business Daily) is now a sponsor of the weekly show. All the charts you have been seeing in the videos and will continue to see are from Marketsmith. They are offering my readers a three week trial for $19.95. Click this link if you would like to try it out.

Also published on Medium.