[Market Outlook] A Prime Example

A Prime Example   November 15th, 2015 Keith Schneider      CEO, MarketGauge.com  In a rapid about face, stocks got hammered this week (broke the 7 week up-streak) after Yellen’s yelling for a rate increase finally has been noticed.  Stock Markets sold off 4-5% from the highs set in early November. Worth noting is that transports have remained weak and have not been able to cross the 200 day moving average, and that the benchmark  S&P 500 moved back under the 200 day moving average and down into a recovery phase. If Yellen follows thru, no one really know the consequences to the markets since rates are at 5000 year lows and have not risen since the 2008 financial crisis. Debt levels have soared just about everywhere. The Fed has not officially raised rates but did stop quantitative easing October 2014. Generally speaking, the Wall Street adage of two steps (rate hikes) and then a stock stumble might already be closer to reality as eliminating QE might have been that first step.  This could mean that at these levels stocks are not factoring it in and they could be in for a nasty surprise if Yellen follows through. Fridays move down was exacerbated after the close by the tragic events in Paris that was just starting to leak out on social media around the close of the markets in New York. Our deepest condolences to all those impacted by these senseless crimes against humanity. Considering this backdrop and this week’s selloff the odds of the hike are certainly significantly lower. One standout has the NASDQ 100 (QQQ) that hit new all-time closing highs last week and is one of the few stocks indexes anywhere globally that is in bull mode. This has been led by Amazon and Google. In fact, our Nasdaq 100 ALL Stars trading model is holding both Amazon and Google and both are on fire.  (Follow this link for a free PDF on catching those moves on leading stocks: https://marketgauge.leadpages.co/nq-100-report-dv/). Amid all the gloom and doom, the parabolic move in these tech giants is actually is an important positive message and something worth sitting up a paying attention to. Wall Street is rewarding companies that wisely invest in their future and do not just manage quarter to quarter earnings with financial engineering. It might require some patience but betting on companies like Amazon with a consistent methodology pays off. Tap here for this weeks market outlook video. Follow this link for a free webinar on catching these parabolic moves in leading stocks: https://marketgauge.leadpages.co/nq-201511/

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