The S & P 500 and Nasdaq closed the week with new heights for 2019. This strength is mainly due to the good revenues of JPMorgan Chase (JPM) and the end of Disney years (DIS) following the Announcement of a new streaming service. Some good economic news from China also helped the bullish cause.
The index trend has been on the rise since April 1, when there was a gap between some positive economic news from China. This underestimation of the news worries about a reverse yield curve and a slowing of economic growth. As I said in my opening article on Friday morning, we live in an environment of good growth, low inflation, unprecedented unemployment and accommodative central banks. There is no convincing negative narrative to worry the market players.
Although the week was positive, there were some peculiarities. The volume was low and the trading was very dull and dull at the same time. There were not many aggressive deals, but some larger companies did well and gave the indices a healthy appearance. Banks and financial services (XLF) performed well this week, but more speculative groups such as biotechnology and cannabis struggled.
The trend of the indices is rather positive, but the underlying action has been mixed on lighter volumes, which makes things more difficult for traders. While this is partly a precautionary feature before the earnings season, JPM has been a good start for the reporting season, which resumes next week but does not really take precedence until the following week.
There is a lot of bears mocking this uptrend in the market. However, talking is not only cheap, it will cost you money if you try to fight against this market action.
Have a good week-end. I see you Monday.
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