Monday’s session was quiet, but AAPL weighed down the NASDAQ. The Dow and S&P 500 were able to extend the current rally off the lows. Tuesday we will deal with nonstop election coverage from news outlets if you choose to subject your self to it. In addition, pundits will also turn to the FOMC meeting and announcement Wednesday afternoon. We are not too confident we will see this market continue pushing higher. Of course we will follow price action of our stocks, but given what is in front of us there isn’t much to cheer about. Remain vigilant with your risk management process and let the market go where it wants to go.
AAPL’s demise finally kills the FANG acronym. We are sure there will be a new one to come out in the future. All these stocks now are setting up as short positions. Whether it’s an outright short position or accomplished with options these stocks are setting up for lower prices. Our subscribers will have access via our New Postions report when these stocks flash the short signal. Be patient.
The FOMC is hell bent on crushing this economy with higher rates. Odds still favor a December rate hike. The stock market is signaling the economy won’t be able to handle higher rates. Keep in mind the Fed is always too late with rate cuts and always raise rates too much. It would not surprise us to see the Fed raise rates through the end of the year and the economy see back-to-back declining quarterly GDP growth. We haven’t had a recession in 10 years thanks to the $3T the Fed pumped into then economy. A recession would not be a surprise!
We hope you have a great week!
