The Fed made their big move this week and … nothing of significance happened.
The stock market remains in a sideways pattern with the percentage of stocks showing constructive behavior improving ever so slightly:
I’m still waiting on the S&P 500 to trigger a Re-Entry Rule but we’re not quite there yet:
I do expect another significant correction in the stock market but personally, I don’t think that we’re there yet.
I’ve shared my proprietary time-cycles several times in the past few months. The medium term and longer term primary cycles continue to be slightly at odds with each another … which is one reason why I continue to expect a sideways to slightly up market:
The big news this week is that the US Dollar Index finally triggered a Re-Entry Rule:
While I’m not expecting the Dollar to shoot for the moon from here right away, I do think that a stronger Dollar is likely to hold sway for the first half of 2016.
That’s more bad news for commodities which show no signs of recovering anytime soon. Gold, Silver and Oil all have continued their unrelenting downward marches with little, if any, signs of recovery. A strengthening dollar will do them no favors.
My stocks of the week are United Parcel Services (UPS) and JP Morgan Chase (JPM) – two stocks that need no introduction.
UPS recently triggered a Re-Entry Rule and has dipped into the Low Risk Zone with strong support from its Smart Moving Average.
JPM has enjoyed an uninterrupted uptrend for the past several years. It recently dipped into its Low Risk Zone, bounced back out and now has strong support from its Smart Moving Average. Look for JPM to break out to new all-time highs soon.
One of my beliefs about the financial markets is that they are designed to fool the maximum number of market participants. A period of sustained market unease would certainly frustrate both bulls and bears alike … and might be just what the market gods will delight in (and profit from) the most.
Stay objective … and unbiased,
Richard M. Smith, PhD