MONDAY-WEDNESDAY’S ACTION: Stocks Are Strong
Stocks opened lower but closed higher on Thursday after taper woes resurfaced as hope spread that the global economy was improving. U.K. GDP rose 0.6% and matched estimates which suggests the worst may be over. Meanwhile, business morale in Germany rose for a third straight month in July. Economic data in the U.S. was mostly positive. Durable goods rose sharply easily beating estimates and weekly jobless claims were nominally higher. Stocks flat on Friday even though U.S. consumer confidence jumped to a 6-year high and easily beat estimates.
MARKET OUTLOOK: Stocks Perched Below Record Highs
The Fed induced rally is alive and well after Bernanke did a 180 and shifted the narrative back to a world of infinite Fed money. Our goal is to remain in sync with the broader trend of the market (up or down) and not get caught up with the minutiae of changing labels on the market status very often. As always, keep your losses small and never argue with the tape.