Archive Category: Precision Profits (Market Intel)

I have a quick reminder to look out for your next Market Intel report this Friday. You’ll see it in the same email as your weekly portfolio update. As I announced last Friday, we’re combining both to streamline the most important updates for you each week. This is a great way to review recent market action as we see what the biggest indicators and upcoming economic news are telling us to expect next.

With the S&P 500 Index trading at an all-time high, we should expect to see bullish economic data. But that’s not the case. Freight shipments are dropping. That’s a leading indicator warning us of an economic slowdown. Of course, a slowdown doesn’t always mean recession. But that inverted yield curve is now at the point where a recession is increasingly likely.

Last week, we reached a milestone in the S&P 500 when the index moved above 5,000 for the first time. As traders, we know that’s important. But it doesn’t tell us what to expect next. For that, we need to turn to the charts. And the chart of the S&P 500 shows cause for concern … maybe. The recent run-up has been rapid. We are now at the point where the chart tells us we are in the early stage of a new bull market … or due for a pullback.

News is difficult to trade. We see it challenging traders every earnings season. Sometimes companies beat expectations, and the stock sells off. Other times, earnings are lousy and the stock soars. This idea extends beyond earnings.

Breadth and momentum are warning that the uptrend in prices could be in trouble. Seasonals also confirm that position. We are at all-time highs in price. But all it takes at all-time highs to reverse in trend is some bad news. This week, there’s a possibility we’ll get that from one of the companies reporting earnings.