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.
The earnings season kicks off in full this week.
Here is this week’s Momentum Monday with Ivanhoff and I going through the markets. You can watch or listen here.
The market sentiment is as bad as last December which is bullish for stocks. Bloomberg reported that we are seeing the largest rush to safety since the Lehman collapse. Even as Apple exploded Friday to all-time highs, sentiment on the stock remains very negative. I will take lines in store and happiness with my new iPhone camera over the sentiment.
Negative sentiment is on its own not enough to get me excited about adding more stock exposure, so I am just watching right now.
As for the trade deal, nobody has a clue what is really happening so all we have to go on is the price action on Apple, Alibaba and the semiconductors which is mostly strong. The big money continues to price in a broader deal.
My big concern as we ended last week is why are the markets not much higher?
Interest rates continue to be incredibly low. On Friday alone we got…Brexit “progress”, China “partial deal”, $82.7B repo, $60B/month Treasury buying announcement. All this on top of multiple rate cuts already.
The answers may come this week.