Sideways Action Continues…For Now
Monday-Wednesday’s Action: U.S. Markets Relatively Quiet
Stocks opened higher on Wednesday after markets overseas soared. The Nikkei 225 Stock Index surged +7.7% to 18,770.51 in Tokyo, posting its largest one day gain since October 2008! The Tokyo Stock Exchange reported a huge increase in short selling since September 1. The report showed short-selling accounted for 40% of trading since September 1 which is the highest proportion since the exchange started keeping records in 2008. The big rally came after Japanese Prime Minister Shinzo Abe reiterated his pledge to cut taxes by 3.3% from Japan’s 34.62% corporate tax rate in 2016. China’s stock market also rallied on hope for additional stimulus. Speaking after markets closed, Chinese Premier Li Keqiang said that China will be able to maintain mid-to high-speed growth. In the U.S. Apple held its latest event which occupied the headlines for most of the day and announced a few new products and new iPhones and iPads.
Thursday-Friday’s Action: Stocks Quiet Ahead of Fed Meeting
Market Outlook: A Major Top?
Every bull market in history has a definitive beginning and an end. It is important to note that with each day that passes, we are getting closer to the end and further away from the beginning. This bull market is aging by any normal definition and celebrated its 6th anniversary in March 2015. The last two major bull markets ended shortly after their 5th anniversary; 1994-2000 & 2002-Oct 2007. As always, keep your losses small and never argue with the tape. If you want exact entry and exit points in leading stocks, or access more of Adam’s commentary/thoughts on the market. Join FindLeadingStocks.com.