- The S&P 500® rose 0.81% as Janet Yellen’s dovishness was greeted with cheers on Wall Street
- The NASDAQ Composite was the day’s leader (+1.53%) but the Russell 2000 was right behind it (+1.32%)
- All four major U.S. equity indices have strongly bullish intermediate postures and are trading above rising 30 day moving averages
- Only the Russell 2000 has a “3 Green Arrows” signal currently due to MACD histograms that have cooled down on the other indices
- Cryptocurrencies remained hot, with Ethereum up tremendously(+20%) over the holiday weekend, allowing us to close down our previous trade after just 2 days at max gain
- The Dollar fell 0.29%, which helped support commodities and foreign stocks
- Oil was up 1.16%, gold was up 0.85%, and the Emerging Markets index was up 1.66%
- Oil’s strength has been a big reason behind the outperformance of junk bonds in the fixed income complex
- Long-term U.S. Government bonds rose slightly, but remains with a strongly bearish posture; the 10-year Treasury yield settled lower to 1.09%
- Energy took over the top slot on the Sector Selector tool over the weekend, and was also the strongest sector today(+2.01%)
- Communications also had a strong day(+1.81%) and has a good chance to get back above its falling 30 day moving average due to Netflix’s earnings tonight
- Technology and Industrials have weakly bearish intermediate postures, but their moving averages still point higher
- Staples have been out of sync with the rest of the market; they’ve sold off so strongly in recent weeks, that they ended the day with an oversold cluster signal
- Our trade application example featured selling a bull put spread on Costco (COST) as a slight reversion-to-the-mean trade based upon its own oversold cluster signal
About Brandon Van Zee
Brandon is a co-founder of Market Scholars, where he builds portfolios while teaching daily interactive online classes and is a host of the Market Outlook YouTube video. His focus is on dividend growth investing, top-down trend trading, and put selling. He has been in the financial services industry and investing his own portfolios since 2000. Prior to Market Scholars, he was an Investment Instructor and Subject Matter Expert (SME) for dividend investing at TD Ameritrade’s education division, Investools. There he taught webinars, conducted in-person workshops, and helped write their Income Investing course material along with the scoring system used for dividend stocks. He was also the host of the Dividend Depot podcast and the Market Forecast YouTube video, along with writing for The Ticker Tape magazine and Coaching Corner blog. Other roles he has held in the financial industry include: Dividends/Reorganizations Specialist(RBC Wealth Management), Assistant Trader(RBC Global Asset Management), Head Trader(Provident Capital Corp), and Investment Specialist(TD Ameritrade). Brandon spends his free time traveling and enjoying summertime mountain activities(hiking, fishing, camping) with his wife and son.
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