Wow, did you see the market this week!
Here is a recap of what is going on by just looking at the numbers. By no means is this financial advice and would never even think of offering it. This is only stating the numbers. Markets tell you what to do, not some guy writing about the markets on his blog 😉
Dow Jones – Made new highs and closed important weekly numbers.
NasDaq – Made new highs and closed above important weekly numbers.
From a low in the Dow at 21,712 on December 26th, 2018. We now have a turn around in a few short months. So for the week as it stands, the markets in US look strong (possibly for 3 weeks). We need to let the market tell us what’s next.
What will be interesting is European elections coming in May. This is also an important event and timing for the markets.
We appear to have eyes set on 26700 area for the next 3 weeks as we move into mid-March.
Yet we are still watching end of February for a breakout. March will be shaky and may make people nervous. But let’s watch the markets… long term is appears to be interesting for Dow Jones.
International Currencies For Week Ahead:
USD.JPY — USD vs Japanese Currency, Appears to show weakness
USD.CNH — USD vs China Currency, Appears to be showing weakness
USD.RUB — USD vs Russian Ruble, Appears to be showing weakness
While dollar appears to be super bullish, it interesting to see Asia currencies show some strength against the dollar. With this interesting data, would we see something on the horizon in Asia next week. Is the trade deal going to heave some headlines. Who knows and let’s allow the markets tell us what will happen.
Just keep in mind, we see currency being collected in Asia vs the dollar into next week. Where Asia puts the currency next and into what assets will be very interesting.
Capital Flows Tell Us Everything
Dow Jones is where international investors play. They like the blue chip stocks(aka: Trophy wives). So while the Dow Jones is usually leading indicator, it may take USA money to figure out what is happening after the fact.
By seeing capital flow into the DOW, we have to ask the question… If our US hedge funds and money masters are so bearish on the market. Where is capital coming from?
Waiting For The Month of May
Well, considering the elections coming into May in Europe. Maybe some are worried about the future in Europe. Is it possible emerging markets are not feeling confident.
Should be an interesting week ahead! Enjoy the show!