No Non Sense News
Today is Tuesday, November 12 and it is 3:00 PM.
From a trend standpoint, all major averages are trading above their short, intermediate and long term trend lines. A far cry from the news we hear daily about impending doom and gloom. I often refer back to this simple quote from Don Guyon in his book ONE WAY POCKETS (1917).
“The market itself determines the relative importance of all factors more accurately than any speculator can hope to interpret them.
So we made it through the notoriously weak month of October and now we are entering the November to April time period which tends to be seasonally positive for the market. Further, 2020 is an election year and election years tend to be good for the market as well.
As many of you recall, only a few months ago, the pundits were predicting an imminent recession as a yield curve that was inverting at the time was cited as justification. Two months later the yield curve is far from inverted as evidenced by the rapid acceleration of the spread between the 10 year and the 2 year government bond.
And banks are one of the chief beneficiaries of a rising and steeper yield curve.
Jamie Diamond of JPM is loving life as his stock is pushing into new high territory.
And money is now flowing into equities at a good rate as demonstrated by global equity fund flows.
Now all of this is not to say we won’t have a correction in some form in the near term. Corrections should be expected as the normal ebb and flow of the market. However, looking at the fundamentals, things are looking pretty good right now. And according to Stock Traders Almanac, November is the number one month of the year for S&P 500 since 1950 with an average gain of 1.6%, up 47 times in 69 years.
Finally can anyone guess what this photo is?
Dow Jones Industrial Average Index
Nasdaq Composite Index
S&P 500 Index