January 19, 2020
Weekly Market Outlook
By Keith Schneider
All key U.S. equity indexes are now up on the year led by NASADQ 100 (QQQ) which is up more that 5%.
This is more than one would make sitting with the U.S. long bond for over a year.
However, there is a clear disconnect between market action and some key risk metrics.
One glaring disconnect is that Utilities are outperforming the S&P500 on a short-term basis, which is generally an excellent risk-off indicator.
It is highly unusual for this to occur when stocks are hitting new all-time highs.
This week’s highlights are:
So, speaking of Beyond Meat, we had another great discretionary trade using our Real Motion indicator which made it extremely obvious that its downward price action to new lows was seriously diverging from its momentum.
This is exactly what our proprietary Real Motion Indicator is designed to find.
At its peak from our entry we were up almost 75%, and we sold portion of our position up almost 70%.
Not bad for being in the trade for only 6 days.
Best Wishes for your trading,