Morning Comment: Several Markets at Critical Junctures

It’s never ceases to astound us how human nature works when it comes to the markets. Back in late August…when the stock market was falling…people were talking about an earnings recession…if not a full blown economic recession. Today (in October)…with the stock market hitting new highs…people are now talking about a bottoming in earnings growth and no recession on the horizon.

The problem is that not much else (besides the stock market) has really changed. Yes, earnings are beating expectations, but they always do! Similarly, the GDP growth estimates are coming down across the globe, not improving.....This does not mean that growth will definitely not improve going forward, but it DOES tell us that the recent rally in the stock market could merely be one that worked-off the previous oversold condition...and thus the markets will roll-over soon and move back into their multi-month ranges (which would involved material moves).

As we have been saying for some time now, several different markets are at critical junctures on a technical basis. Therefore, whichever way the stock market, bond market and dollar move over the coming week or two should be incredibly important for how they act over the rest of the year.

Therefore, investors will need to stay nimble over the near-term. To see the key levels we're watching in each of these markets...and learn which way we believe they'll "break" from here, please click here to subscribe to my premium letter, "The Maley Report."

Matthew J. Maley

Managing Director

Chief Market Strategist

Miller Tabak + Co., LLC

Founder, The Maley Report

275 Grove St. Suite 2-400

Newton, MA 02466


Although the information contained in this report (not including disclosures contained herein) has been obtained from sources we believe to be reliable, the accuracy and completeness of such information and the opinions expressed herein cannot be guaranteed. This report is for informational purposes only and under no circumstances is it to be construed as an offer to sell, or a solicitation to buy, any security. Any recommendation contained in this report may not be appropriate for all investors. Trading options is not suitable for all investors and may involve risk of loss. Additional information is available upon request or by contacting us at Miller Tabak + Co., LLC, 200 Park Ave. Suite 1700, New York, NY 10166.

Posted to The Maley Report on Oct 30, 2019 — 8:10 AM
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