Weekend Update

November 3, 2019
November 3, 2019 Ryan

Weekend Update

The equities market is on fire. Thank you Fed. Thank you earnings. Thanks… whatever.  Who cares? The market is strong (data is mixed behind the scenes, of course) and it’s been a good time to participate.  Trying to call the top is dangerous to ones account – stay out of that business.

Looking back, I mentioned that the consolidating triangle within a rising channel was worth watching on the SPY daily:

 

Fast forward to today and you can see the obvious breakout through the top of the triangle (orange line) and run:

SPY Daily

SPY Daily

Not only did SPY get through the triangle, it also shot through the top of the long term, uptrend channel.  That’s impressive.  A little sideways action this week would be ideal as the market continues to digest earnings season.

To reinforce the message of market strength, check out this tweet comparing where we are this year vs this time last year:

 

 

Lastly, don’t fight the Fed. We say it all the time, but it can’t be stated enough.  It’s very dangerous to short a market that’s being backstopped by the Fed.  Take a look at this illustration of the S&P 500 vs Global Money Supply (liquidity):

 

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