Stocks rallied sharply last week after the damage from hurricane Irma was much less than originally expected. Thankfully, in the 11th hour, Irma weakened considerably, made a last-minute turn, and skated up the west coast of Florida. The Dow, S&P 500, Nasdaq Composite, and Russell all ended the week higher as investors continued to shrug off all negative news and bid stocks higher. The market looks very strong and the fact that it refuses to fall, even on bearish headlines, is a bullish sign. Last week, North Korea fired another missile over Japan, Retail Sales missed estimates and inflation came in higher than expected, but stocks rallied. That reiterates an important point- that it’s not the news that matters, but how the market reacts to the news. Until, we see any signs of weakness, the bulls remain in clear control.
Thur & Fri Action:
Before Thursday’s open, the government said, the consumer price index came in higher than expected which was another sign that inflation may be increasing. Remember, higher inflation may put pressure on the Fed to continue raising rates. Stocks rallied on Friday even after retail sales came in at negative -0.2%, missing estimates for a gain of +0.1%.
Market Outlook: Bulls Are Back In Control
The bulls are back in control and the market remains very strong. As always, keep your losses small and never argue with the tape. Get Our Free e-Book: Learn How To Buy Leading Stocks…EARLY. Get It Here…