With the short-term volatility over the past few weeks, this is no clear trend to take advantage of post today’s employment report. By that, I mean, our short-term trading system specifically created for this report has no strong edge. The report came in strong and pre-market indications are for a higher open which can sometimes point towards a short-term peak.
With the much better than expected report, the recent market leaders may be under pressure. Utilities, staples, REITs, telecom and precious metals all should be watched closely.
It’s been roughly four days of sideways action for stocks so the market could certainly push higher and press the bears. However, while I continue to be positive on almost all time frames, I just don’t think the major indices are ready right here to blast off to 20,000. That’s coming, but I would be surprised if it’s before Labor Day. (Cue to markets. PLEASE surprise me!)
Random things of interest. Amazing how the collapsing British Pound was the supposed cause for the the markets hitting the BREXIT skids. However, the pound has been down the last 6 days with stocks rallying. Media and pundits wrong as usual.
Crude oil seems to have put in an intermediate-term peak and may be transitioning from a trading range to decline. That’s important to watch and see how stocks react to that.
High yield bonds are hitting new highs for 2016 which is anything but bearish for stocks.
Paul Schatz is President and Chief Investment Officer of Heritage Capital, LLC, in Woodbridge, CT. and a Managing Partner at Numetrix Capital, an investment research firm focused on multi-manager, multi-strategy portfolio solutions.
The opinions and forecasts expressed herein are those of Mr. Paul Schatz and may not actually come to pass. Mr. Schatz’s opinions and viewpoints regarding the future of the markets should not be construed as recommendations. The analysis and information in this report is for informational purposes only. No part of the material presented in this report is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed nor any Portfolio constitutes a solicitation to purchase or sell securities or any investment program.
Any investment decisions must in all cases be made by the reader or by his or her investment adviser. Do NOT ever purchase any security without doing sufficient research. There is no guarantee that the investment objectives outlined will actually come to pass. All opinions expressed herein are subject to change without notice. Neither the editor, employees, nor any of their affiliates shall have any liability for any loss sustained by anyone who has relied on the information provided.
The analysis provided is based on both technical and fundamental research and is provided “as is” without warranty of any kind, either expressed or implied. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.
Paul Schatz, is the owner of Heritage Capital LLC (Heritage) a registered investment adviser. Advisory services are offered through Heritage Capital. For a complete description of investment risks, fees and services review the Heritage firm brochure (ADV Part 2) which is available from your Investment Representative or by contacting the firm. Heritage also serves as a sub-advisor to other investment advisory firms. Heritage is not registered as a broker-dealer.
Employees and affiliates of Heritage may at times have positions in the securities referred to and may make purchases or sales of these securities while publications are in circulation. Editors will indicate whether they or Heritage has a position in stocks or other securities mentioned in any publication. The disclosures will be accurate as of the time of publication and may change thereafter without notice.
Investments in equities carry an inherent element of risk including the potential for significant loss of principal. Past performance is not an indication of future results.