jump to navigation

Recovery, Now Slow & Steady September 30, 2016

Posted by Tom in Thoughts.
Tags: , ,
trackback

Sept. 30, 2016 –  This was the end of the third quarter, 2016 and about the best phrase to sum it up is “Recovery, Now Slow & Steady”.  A glance at the chart below shows the major burst down in June, then a dramatic recovery in July, ending in Slow & Steady for August and September.  There was (and is) plenty to concern this market.  The FED & interest rates, European banks, the US elections and the ongoing issues with ISIS, Russia et al.

nasdaq

To top off concerns we have to add concern about the possible slowing economy.  The political rhetoric paints a sad picture, but reality is joblessness is way down, especially for those with a skill, housing has recovered, energy is cheap and interest rates are low.  Things are not that “bad” compared to where we’ve been.  But corporate profits are not growing as fast as before (no kidding, we did come out of a major recession BTW).  So this market appears to be looking for the next big thing to really push it higher.

Here’s a snap shot of sector where I’m looking at strength in the short term:

top-sectors

Pretty selective right now, and as we cautiously break into higher ground, things will likely be slow with volatility increasing.  I note that Market Sentiment is neutral and my “Volume Flow” indicator is lightly Bullish.  Not many seem to be in a rush to buy into this market, though it rises slow & (fairly) steady.

Have a good week.    …………….  Tom  …………….

price chart by MetaStock; pie chart by http://www.HighGrowthStock.com.  Used with permission.

Comments»

No comments yet — be the first.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: