U.S. stock markets are higher after third-quarter earnings reports continued to impress. Netflix (NFLX), Morgan Stanley (MS), and CSX corporation all had positive earnings results. A revised Brexit deal was announced this morning, setting up another crucial vote in Parliament on Saturday.
The S&P was little changed on Wednesday and did now follow through after Tuesday rally. The last two trading days have come with below-average volume, but the trading actions have been good enough for us to move to short term bullish. The RSI index moved above the 50 level to support the current rally, and we feel that a test of the September high will potentially happen this month. Yesterday was a sideways trading day, which is what we wanted to see happen after such a big move off the October low.
We are currently long term bullish and short term bullish.
John N. Lilly III
Accredited Portfolio Management Advisor℠
Accredited Asset Management Specialist℠
Portfolio Manager, RJ
Dominguez & Jones Wealth Management Group
The Relative Strength Index (RSI), developed by J. Welles Wilder, is a momentum oscillator that measures the speed and changes of price movements.
The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S stock market. Past performance may not be indicative of future results. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investors’ results will vary. Opinions expressed are those of the author John N. Lilly III, and not necessarily those of Raymond James. “There is no guarantee that these statements, opinions or forecast provided herein will prove to be correct. “The information contained was received from sources believed to be reliable, but accuracy is not guaranteed. Investing always involves risk and you may incur a profit or loss. No investment strategy can guarantee success. The charts and/or tables presented herein are for illustrative purposes only and should not be considered as the sole basis for your investment decision. International investing involves special risks, including currency fluctuations, different financial accounting standards, and possible political and economic volatility. Investing in emerging markets can be riskier than investing in well-established foreign markets.
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