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All Time Highs

Futures are indicating the markets will push to all-time highs today. This is based on the news that there appears to be some kind of “Tariff Truce” with China.

This being the 4th of July week, it’s a little like Christmas – the trading week is short because the 4th falls on a Thursday. This means Friday is likely to be a lower-volume trading day as most will extend their vacation into a 4-day event.

Expect the shortened trading week to have lower volume and exaggerated movements. Looks like a strong pop higher for Monday. The question is whether or not there will be much follow-through. Markets could drift even higher this week. It’s next week we should see the reality check.

For the time being, enjoy the ride. Setting all-time highs is useful on the technical front. It demonstrates the market has more room to grow before a correction. The question is, can we hold this level, or is the the last bright blink before the star burns out?

We’ll need a bit more info before we can make that call. But based on the still solid underlying economic data, it looks like things can keep pushing higher yet.

For now, keep an eye on the 3000 number for the SPX. That’s the next big fat round number market participants (and yes, probably most of the algo’s too) are keeping an eye on.

IMPORTANT DISCLOSURE INFORMATION

Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by BigFoot), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from BigFoot. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. BigFoot is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the BigFoot’s current written disclosure statement discussing our advisory services and fees is available for review upon request.

Does this Week Even Count?

Because the 4th of July holiday falls on a Wednesday this week — and the 4th-of-July-Eve holiday apparently justifies a half-day for the markets on Tuesday — you can expect a couple things this week:

  • Volume will likely be lower than average
  • Volatility may be higher than average (on lower volume)

There’s actually a fair amount of economic data due to be released this week – including FOMC minutes.  So there markets will have some things to digest.  But many of the players will likely be out of the office until next week.  So, while it’s bold to say, it’s possible this week is kind of a throw-away.  It’s similar to the Christmas/New Year’s holidays in that many of the players have more-or-less positioned their books so they can be out of the office.

So don’t expect a breakout week.  Futures are indicating a lower open on Monday, with the 100-day-moving-average looking like the support level — right about 2700 for the S&P500.  If you’re looking for resistance, you’ll find the first major areas at 2750 and 2790.

Have a safe 4th of July — and remember:  no forum call this week!

IMPORTANT DISCLOSURE INFORMATION

Please remember that past performance may not be indicative of future results. Different
types of investments involve varying degrees of risk, and there can be no assurance
that the future performance of any specific investment, investment strategy, or product
(including the investments and/or investment strategies recommended or undertaken by
BigFoot), or any non-investment related content, made reference to directly or indirectly
in this blog will be profitable, equal any corresponding indicated historical performance
level(s), be suitable for your portfolio or individual situation, or prove successful. Due
to various factors, including changing market conditions and/or applicable laws, the
content may no longer be reflective of current opinions or positions. Moreover, you
should not assume that any discussion or information contained in this blog serves as the
receipt of, or as a substitute for, personalized investment advice from BigFoot. To the
extent that a reader has any questions regarding the applicability of any specific issue
discussed above to his/her individual situation, he/she is encouraged to consult with the
professional advisor of his/her choosing. BigFoot is neither a law firm nor a certified
public accounting firm and no portion of the blog content should be construed as legal
or accounting advice. A copy of the BigFoot’s current written disclosure statement
discussing our advisory services and fees is available for review upon request.