U.S markets are set to open slightly higher today after investors received warnings from major central banks about a global slowdown. Treasury Secretary Mnuchin said that progress continues on a trade deal after a “productive” call with China’s Vice Premier Liu He.
The S&P had a low volume day and traded sideways as we had hoped it would. The index is still below the high for the year of 2895.77 set on 4/8/2019. We are concerned about the lack of volume during these most recent highs. This could be a sign that demand for stocks is drying up, so we still have short term caution on stocks going forward. We are looking for more sideways trading today.
The U.S. CPI rose less than expected which helped reinforce the Federal Reserve’s message of patience on interest rates. Core CPI rose only 0.1% and 2% from one year earlier. The FOMC minutes were released on Wednesday which showed the Fed is wrestling with “significant uncertainties”, and they are dealing with persistently low inflation. All this language, again, shows we should have low rates for the rest of the year.
We are currently long term bullish with short term caution.
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.
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