(Reminder for those attending the Dan Zanger seminar this weekend in Los Angeles California, please make sure to say hi on Saturday, I’d love to meet you! If you don’t know what I look like just check out my bio or Linkedin page)
Despite a 5th consecutive week of higher than expected initial jobs claims and Exxon’s (XOM) miss, the market carried momentum from Wednesday and moved higher. Bespoke posted a good blog today citing the recent drop in bullish sentiment, arguably a contrarian sign for higher prices to come. The last time the reading fell this low the market was right near its 2011 bottom and we all know what happened after that.
The big question right now is whether or not we are simply in another consolidation or if the market has actually topped. I recommend reading Barry’s thoughts on the matter, but the gap down scare that started this week has all but faded as the S&P 500 is now back at 1400. At the least, yesterday was a good opportunity to hold the reigns and stop trimming exposure. Once we see a close back above 1400 the argument can be made to slowly start putting some of that sidelined cash back to work.
There will be no market recap tomorrow as usual. I return from California early Sunday so I will see you back here Monday to start the week. Stay frosty (sharp) out there and overall have a fantastic weekend!
Amazon (AMZN) handily beat earnings driving its shares higher in after hours. Should be a great stock to watch over the coming weeks to see if tomorrow’s pop leads to some consolidation and higher prices thereafter.
And lastly here is an updated look at Gold using the GLD ETF which has formed a long term inverted head & shoulders pattern. Gold has been pretty boring which is why I have not included a chart as of late.