September 3, 2018
Weekly Market Outlook
By Keith Schneider
US Equities hit new all-time highs as the trade war with Mexico appears to be a head fake. August performance for the NASDQ 100 (QQQ) was up over 5%.
September is usually seasonally weak, but we just had some very positive economic news and the odds are now higher that this year could be an anomaly.
The unemployment rate hit 3.9%, its lowest numbers since Woodstock (that was August 1969) This is very positive news for the longer-term picture as recessions don’t start until at least 6 -7 months after a rise in the unemployment number.
Last week we mentioned that Israel was the leading stock index looking out over the past 3 to 6 months which continued that trajectory this week, up almost 2%. The Index has also broken out of a multi- year congestion pattern.
The recent indictment of the Prime Minister’s (Bibi Netanyahu) wife, along with other looming legal issues for Bibi, has not fazed the Israeli stock market. This is a good take away and market trading lesson- pay attention to the market action, especially when it discounts the news headlines.
The highlights of this week’s market action are the following:
Please check out this week’s videos for specific risk points