Stock Market Outlook entering the Week of November 13th = Uptrend
- 20/50/200 Day Moving Averages: Uptrend
- Price & Volume Action: Uptrend
- Objective Elliott Wave Analysis: Uptrend
What a week! Even though most of the price change occurred after-hours in the futures markets, individual investors still saw the impact on their portfolios (or at least I did!). A good reminder that we can’t predict what the stock market will do, we can only be prepared to profit from it.
US stocks rallied Monday on news that the FBI cleared Hillary Clinton in the latest round of email discovery. On Tuesday, stocks tumbled after hours as the US election appeared to close to call. As the night wore on, stocks reversed course and swung to the upside as a Trump victory became more certain. The remainder of the week saw massive price moves (both to the upside and downside) as large investors reallocated their holdings to companies likely to benefit from Trump’s policies.
Performance to the moving averages exploded higher. All the indexes are back above their 200 day moving averages. Only the Nasdaq remains below its 20 and 50 day moving averages.
The Nasdaq picked up another distribution day on Thursday as money rotated out of technology.
OEW’s medium term outlook shifted back to an uptrend, but cautioned that there may be some short-term selling this week before additional moves higher.
As mentioned last week, check your holdings. For stocks out of favor, your stops were probably triggered. And for those in favor, you’re probably sitting on some nice gains! When the markets find support, you can evaluate new positions.