Weekly Update: Stocks Stall at 200-Day Moving Average
Stocks went nowhere this week.
After a huge move the week before, the indexes stalled.
As expected, the S&P found resistance at its 200-day moving average.
I also don’t expect to see much movement this coming week.
US markets are closed all day on Thursday for the Thanksgiving holiday, and they will close early at 1 p.m. ET on Friday.
Volume is usually relatively low surrounding the Thanksgiving holiday.
Unless Putin fires missiles or Biden does something crazy, it will likely be a short, quiet week in the market.
The Big Picture
Looking at the big picture, I am still not convinced the market has bottomed.
The Federal Reserve is expected to raise interest rates another 50 basis points (0.5%) at its next meeting.
That is only slightly better than the previously unprecedented 75-basis-point hikes we’ve seen lately.
The Fed also remains committed to aggressively unloading its $8 trillion balance sheet on the market, which will be a huge headwind for investors.
Personally, this is what I expect to see…
We will see how things play out, but I believe we could see another 15%-20% leg down in the index before reaching a bottom.
There are still some stocks showing strength, though, with some sectors outperforming the rest.
Stealth Trades Watchlist
Click here to view this week’s full Watchlist!
But remember that not all of the stocks on our Watchlist are actionable…
When it’s time to make an official recommendation for our Trade Tracker, I’ll let you know on our Alerts page right here!
Insiders Lead the Way
Now, if you’ve ever wondered how I developed a proven track record of trading along the insiders like corporate CEOs, CFOs, executives and board members…
Do yourself a favor and check out my latest Insider Effect presentation!
Corporate insiders are always buying or selling shares in the companies they operate. These folks have a footing of knowledge that Main Street investors simply do not.
I covered my strategy for trading alongside corporate insiders and generating potentially massive gains as a result.
Live Coaching Session
I hope you’ll join me on Monday, Nov. 21, for our next live Stealth Trades session at 3:00 p.m. ET…
We’ll cover all of our new stocks on the Watchlist as well as the rest of the stocks inside Stealth Trades.
You need to attend this session to get the most from your subscription!
In the meantime, you can watch the replay of our latest Stealth Trades session right here.
Best wishes for your trading,
Ross Givens
Editor, Stealth Trades
P.S. Click here to watch my latest presentation and learn more about my Insider Effect strategy!