Charles Green here, Senior Market Analyst here at Traders Agency.
Here’s today Market Pulse 360.
Market Pulse 360 for October 18, 2023
Give credit where credit is due: the market has been fighting a good fight to stay above major support, despite a flurry of challenges:
- Ukraine – Russia war
- Israel – Hamas war
- Rising oil prices
- Bond yields at 20 year highs
- “Higher for longer” short term interest rates
- High mortgage rates (8% now)
- Dysfunctional government (no Speaker of the House)
- Uncertainty in Congress over extending debt limit
- Negative credit watch on US bond ratings
- High credit card and student loan debt
- Messages of doom and gloom
- Extreme volatility in markets
This is clearly the most difficult market I’ve seen since the Great Recession in 2008.
Yet, the markets are holding up at major support and some areas are accelerating:
- Job creation from September was double the number expected last month
- Consumer strength from September retail report was double the number expected last month
- GDP for 3rd quarter likely to be double what was expected
- Corporate earnings are improving, especially for technology
- Wages are holding up and job participation is increasing
It’s clear the long-term positives greatly outweigh the short-term negatives.
If your time horizon is more than a day, week, or month, then this is also the BEST time to own high quality stocks.
The short-term challenges will be remedied, and what’s left is massive opportunity – IF you’re in the right stocks and not hiding in bonds or other cash instruments.
The market has spoken: it does not want to go down and is holding its ground! We will break the range on the 13,000 – 14,000 range on the Nasdaq, and I am very encouraged by the underlying strength in the market.
In the past two weeks, the market had 7 of 9 days closing positive, despite all of the noise and doom and gloom purported. Growth stocks are leading the way higher NOW, and it is not hiding from these short term challenges.
The Nasdaq is still up 25% this year, which no CD, bond yield or money market fund can match; and, 5% return on these cash instruments will certainly be left in the dust when the current short-term challenges in the market are eradicated.
Patience and positioning will win the longer-term!
I think the evidence of how markets have held up in the face of all of the challenges this year is a testament to its strength, not weakness.
To win in this challenging market, you have to stay flexible and use a variety of proven strategies to maximize your chances.
That’s why Ross Givens is going LIVE right now for an exclusive presentation for premium members only…
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A Bit More About Me
My specialty is understanding financial markets and the drivers that influence longer-term direction. I’ve been an active trader focusing primarily on stocks for over 20 years.
- Been an adjunct finance professor for nearly 20 years
- Worked as a financial consultant with Merrill Lynch managing millions of dollars
- Earned a Master of Science Degree in International Business and Finance from Georgetown University and a Bachelor in Arts Degree in International Studies from George Mason University.
- Spent 14 years as a Marine (I enlisted at age 17) traveling all around the world
My education, work and life experience gives me a broad view of the world, financial markets, and life in general that informs my trading and investment decisions.
My passion is helping others to take advantage of the best market opportunities to achieve their financial goals.
This gives me the greatest satisfaction, and it’s the reason why I continue to teach in the classroom and outside of it today with every activity in which I engage. I believe that I succeed only if clients succeed.
I am a very unlikely success story. And this is only because I believe that anything is possible with the right knowledge, focus, and winning mentality! When you have that, success is just a matter of time.
Senior Market Analyst, Traders Agency