It's Monday, a new week, likely to bring more political and global drama. But through it all the stock market has held its own. If stock prices were based upon negative news headlines and bearish blogs the S&P500 would be trading 50% lower than it is today. However money does the talking, and following it has been the right choice the last eight years.... but it hasn't been a smooth ride.
After last weeks recovery, the market sits mere percentage points away from new record highs. I think there are two possible outcomes in the weeks ahead.
(1) The selling momentum has already reached its peak and we are setting up for more dull, deliberate, and steady upside action over the short to medium term.
(2) We are going to get some upside the next week or two before the selling picks up in earnest again. We hit new lows for 2017, before buyers come back and take the market back to new highs in the months ahead.
In either case the overall market is headed higher. I prefer the 2nd scenario because the sell-off will present some tremendous buying opportunities. However in the 1st scenario, despite the overall malaise of the market, there will be stocks moving, much like $DDD and $SSYS moved recently.
I have a few I think are setting up for some strong upside regardless of what the market does over the short to medium term.
Every named sell-off has been a buying opportunity. I think the impeachment excuse will come back again at some point. Will we see an even bigger reaction (scenario 2)? Or will the market shrug it off (scenario 1)?
See you in the chat room.