The past 3 months have seen the major stock market indices transition into consolidation mode. This churning in the stock market has created little net gain for the S&P 500 (INDEXSP:.INX) over this time. However, the consolidation looks healthy.
October Stock Market Video
In the video below, I look at sectors and asset classes within the market that are showing bullish relative strength and strong momentum. I also highlight areas of the market that should be viewed with caution. In this video, I review the following charts: large cap stocks, technology stocks, U.S. dollar index, emerging markets, interest rates, and municipal bonds.
This stock market video was recorded on October 25, 2016.
The market choppiness has lead to a lot of market “noise” (i.e. speculative and binary market commentary). In order to manage risk properly, investors should always be prepared for a move to the upside or the downside out of a market consolidation. That’s just good risk management. Thanks for watching.
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The author of his clients may hold positions in mentioned securities. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.