Market Musings
The Dow made a historic high closing above 40,000 on Friday.
The market call has changed to "Market in
Confirmed Uptrend."
The STI (Simple Timing Indicator) which is the number of "A"
rated stocks in the IBD database remains above the red
line which suggests adding quality stocks to a portfolio
while holding close stops.
Gold, silver and copper continued to show strength. In
fact, copper had a historic short squeeze this week.
After Hamas did not agree to a hostage deal, Israel ramped up
its military actions in Gaza to the dismay of the Biden
administration.
Do not forget that about 25% of the stock markets value is held
by only 5 stocks ... danger ahead?
Have we reached the Minsky moment? The dollar's reserve
status is slipping away taking the U.S. economy towards a slippery
slope.
Still if you believe the government's data, you could
think that the economy is doing better. Looking under the
hood paints a much different picture according to Shadow
Government Statistics.
Gold and silver prices as well as copper should cause one to
question the official data points.
Dare I say that it will be
at least another year of dismal U.S. and world economic growth.
And that is if we don't enter a major military war with either
Russia or China.
Do not be surprised if the NASDAQ falls through 8,000, the SPX
to 2,500 and the
DJIA sees the 25,000 level.
Remember -- "Only purchasing power counts!"
It is difficult to find long-term trading opportunities with
the future so uncertain.
By any reasonable measure, this market is
dangerous.
Be careful ....
To review the 05/17/2024 FlowChart, click
here.
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