USIR Weekly Update Hotline
September 11, 2017
Mixed Market amid Ill Winds
encouraging jump in stocks just before Labor Day weekend melted last
week in the shortened four days of trading through Friday. Both the S&P 500
and the Nasdaq composite indexes dipped back under their mid-summer peaks. They
did, however, manage to close last week above their 10-week moving averages, a
positive technical sign.
is, there are too many economic, financial and political ill winds bearing down
on stockseven as Texas and Louisiana mop up after hurricane Harvey and a
potentially more devastating hurricane Irma heads into Florida and the
southeastern states. These include uncertainty about interest rate policy as
the Fed meets this week, undelivered campaign promises by the Trump
Administration, and light trading volume.
Whats Next? Dont be suckered
in by a market bounce-back the next day or two. Wait for a real rally to
Unlike the Floridians fleeing
north on clogged highways and running out of gasoline, equity investors have
better escape routes and more optionsespecially those who have kept stop-loss
limits tight and allowed cash from stop-outs to accumulate.
tight and resisting the temptation to bottom-fish prematurely is a wise policy
at this uncertain juncture. Biding ones time and waiting for a confirmed
across-the-board rally will keep assets safely intact for the better days that
W. Quickel, Editor