BROAD STOCK MARKET TRADE ALERT (3:00 pm EST)
Yesterday the Fed left interest rates unchanged as expected, and the Fed's remarks following the interest rate announcement were ambiguous, but on the dovish side. It appears there are plans for only one interest rate increase for 2020, but of course, those plans could change according to how the economy performs as we move into the new year.
There are also indications today that U.S./China trade deal negotiations are going well and may even be settled by this Sunday. The broad stock market is responding favorably to this news today as all three market indices jumped to new all-time highs. The directional momentum of all three indices also turned 100% bullish today. For all of these reasons, I am going to enter a long position in the broad stock market now. For those trading index funds, I would suggest a DOW fund as the S&P 500 and NASDAQ have already gained more in their rally than the DOW. We can set our stop loss here on a close below 27,500 in the DOW.
We may see prices back down a bit tomorrow, but as long as they stay above 27,500, we will remain long. Any traders who don't buy today might use that as a good entry point tomorrow.
Yesterday the Fed left interest rates unchanged as expected, and the Fed's remarks following the interest rate announcement were ambiguous, but on the dovish side. It appears there are plans for only one interest rate increase for 2020, but of course, those plans could change according to how the economy performs as we move into the new year.
There are also indications today that U.S./China trade deal negotiations are going well and may even be settled by this Sunday. The broad stock market is responding favorably to this news today as all three market indices jumped to new all-time highs. The directional momentum of all three indices also turned 100% bullish today. For all of these reasons, I am going to enter a long position in the broad stock market now. For those trading index funds, I would suggest a DOW fund as the S&P 500 and NASDAQ have already gained more in their rally than the DOW. We can set our stop loss here on a close below 27,500 in the DOW.
We may see prices back down a bit tomorrow, but as long as they stay above 27,500, we will remain long. Any traders who don't buy today might use that as a good entry point tomorrow.
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