July 7, 2019
Weekly Market Outlook
By Keith Schneider
The performance of the US Equities markets was strong, up over +2% on average for the week. Meanwhile the IWM confirmed a bull phase on excellent volume. Gold (GLD) sold off Friday but held onto it’s breakaway gap put in a few weeks ago and still strongly in play.
Economic data points to a slowing global economy despite the very strong jobs market in the US, even while corporate earnings have been slashed for the next quarter.
The aftermath of the G20 seems dubious at best with China firm on having the US remove tariffs before trade talks resume. The worlds equity markets shrugged it all off and mostly closed higher.
Trump stepped up attacks on Fed Chairman Jerome Powelll to lower rates stating “he doesn’t have a clue”, while ratcheting up the trade war with the EU and Vietnam.
This week’s highlights are:
Most interesting is that gold which gapped lower on the rise in rates Friday morning, reversed direction and closed on its highs by the close. It was still down on the day but showed strength. The yellow relic has been rejecting lower openings with large gaps. Our interpretation is that gold is digesting its recent gains rather than vomiting them out, a healthy sign for the metal.
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For this week's video, click below.
Best Wishes for your trading!
CEO – MarketGauge.com