July 21, 2014
Weekly Market Outlook
By Keith Schneider
Despite global political strife that ranged from the tragic downing of a passenger jet by Russian backed rebels in the Ukraine that killed almost 300 people , to the escalation of hostilities in the Mideast that has brought Israel to war with Hamas , all while the civil war in Syria and Iraq rages on, not to mention the continued strife in various regions of Africa, equity markets continued to make new highs this week after taking a nasty 2% swoon on Thursday, This swoon occurred after the news came out that the Malaysian passenger jet was shot down. Economic sanctions against Russia were also ratcheted up this week adding a bit more uncertainty to global politics and finance.
However by Friday’s close most of those losses were eradicated. All in all, factoring all the key market indexes over the past few weeks, its sideways choppy action. Considering lofty valuations, this long in tooth rally along with eroding market internals and topping pattern in junk debt, is enough data to give bulls the wall of worry to climb and the bears enough daylight to consider coming out of hibernation. Weekly trends are well intact And an interesting short term pattern developed on Friday in the key indexes so click here to see how we are going to play this unique setup in this week’s video.
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