Astute Strategist Blog

Market Context
Good Sunday and Happy Thanksgiving,

Having started the week above the ever so doom and gloom figure of 2940 in the S&P 500 it seemed as if the buyers were in it to win it with the trade talks between the US and China set to take place toward the end of the week. Early in the week, it appeared that buyers had a bit of a hiccup and then it was buying, buying and more buying sending the S&P 500 to rally as much as 100 points off the lows in the week. It was almost like a fairytale that Friday was going to see us trending to just shy of 3000, now the key level we were looking for to see if this was going to be the start us going back to test the all-time highs was 2985 on the week, toward the end of trading Friday sellers came in and we settled at 2970. What does this mean? To put it simply, we are not likely to see a new all-time high in the coming week. Does that mean we won’t? Not at all, given the politics, we are seeing partially control the market but the real focus will be economic numbers and the Fed minutes set to be released mid-week.

It has become clear that the real move in the market is not so much the day the Fed speaks and the minutes released, it is more the day that follows and it just so happens that Fed Chair Powell is speaking twice this week while the consumer price index is released the day after the Fed minutes. This is why hedging a portfolio is so important. You never really know what is going to happen and protecting monies is the key to surviving economic uncertainty. For the very long term, our opinion has not changed, we are still very bullish and pullbacks are simply opportunity. Recall a few months back we mentioned owning a stock like Apple and protecting the downside was simply the opportunity to accumulate more of a stock that was clearly going to be around for the foreseeable future. Apple hit a new all-time high this week of 237.64 while the S&P, Nasdaq, and Dow are still waiting for their turn. We ask again, where would you want to put your monies?