Let’s move on to today’s rundown, and I’ve got to say, I saw this coming miles away.
While the S&P huffed and puffed last week, economic data remained strong, and now everyone’s waiting for this Wednesday’s Fed data.
Here’s what you need to understand: We’re dealing with a fed that likes us to deal with everything long ahead of time so I don’t think we’re in for any surprises or impactful announcements.
So, here’s what we do know: They’re going to tell us that the economy is doing just fine, especially since the number from jobless claims blew everything out of the water.
As I’ve been predicting, the market’s going to look pretty congested over the next couple of days, which is typical before any kind of Fed data comes out.
The only way I see the Fed lowering rates again is if U.S. and China cannot work out a deal for the trade war, of if the economy begins slowing things down.
BUT the market has already assimilated this.
Remember that the Fed has already lowered rates 3 times, and we’re used to seeing bonds and interest rates act inverse to each other.
That means as bonds go up, interest rates go down and vice versa. However, when the Fed raised rates last time, bonds didn’t go up…
With bonds not reacting, it means that interest rate futures are still moving higher even as they lower rates.
Interest rates are at an all time low, and they’re not going to get much lower… and the market is pricing that in.
Aside from the Fed, retail data is coming out Friday.
The reason why I’m paying particular attention to this one is because if it’s better than expected, that’ll give is a nice up-side momentum.
And don’t forget that as the deadline of a trade resolution looms nearer, investors and traders remain sitting on the sideline waiting for an outcome.
The interesting thing is this: If it’s bad news and there’s isn’t a deal, then we’re going to know about it in the next 3 or 4 days.
If things end up working out, then I don’t imagine we’ll find out about it anytime soon…
No news is good news in this case.
Keep watch on the Russell 2000 since it has China built into a lot in it’s price action.
Right now I’m expecting the Russell to go down to the 157 level, creating a symmetrical congestion pattern.
Now, given that markets at record highs, there’s only a few buy-and-hold investments that I expect to deliver massive returns over the next few months.
Most of these opportunities are related to 5G technology, which will spark a technological revolution and create a massive amount of wealth for savvy investors. And some of the top stocks are just starting to take off.
That’s because the massive investment in 5G are showing up as massive earnings beat for a select few companies.
One company I recently told Breakout Report members about has beat earnings 12 quarters in a row and is up 60% in just a few months.
But that’s just the beginning… I think this company has the potential to deliver quadruple-digit gains.
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