Market Outlook
Buy on the Cannons, Sell on the Trumpets
The market closed the week a bit indecisive as 680 in the S&P held up all week as the market tried to climb towards 700, only for it close the week right in the middle of the overall range. As we patiently wait for that 700 breakout whenever it may come.
But over the weekend, we had some major geopolitical events. Now I'm not going to pretend to be some wartime expert but the killing of Iran's leader will have some effects on the markets this week ahead.
But if you have any big fears about the market, the start of wars rarely have a lasting impression on the markets. Even as terrible as the events of 9/11 were, the market experienced only a correction before reversing higher.
So should we fear the market is going to crash due to what happened over the weekend and what may happen in the coming weeks ahead? History is telling us no. Now can there be a pull back? Sure. Are we going to see Defense stocks like LMT and GD gap up on Monday, without a doubt. GD is even giving us a decent entry while LMT has already priced in this weekend events.
Then will we see Energy, Industrial and precious metals like Gold and Silver get bid up as well. All most likely the case.
While Consumer Discretionary, Airline, Tech, Travel and stocks tied to emerging markets take the brunt of the drop.
Quite frankly after the initial fear subsides and most people continue on with there normal lifes. Wars can actual be quite bullish for the stock market as a whole. During World War II, did you know that the Dow Jones increased by 50% during that time period?
This conflict might actually be the catalyst to sent the market higher. The market has been in such a low volatile range for months that it needed an event to snap it out of the tight ranges. These events could give us the knee jerk reaction lower (5%) to shake the market up and gear it up for a new run to highs in time.
I am not looking to rush into anything Monday as the market will have alot of information to digest from what occured over the weekend. But just remember as sad and unfortunate it is of what happens with these conflicts. People are not going to using Netflix less, eat at Chiptole less, or shop less on Amazon. The selling that may come will be purely emotional as a majority of US company will bear no downside to the conflict overseas.
Outside the sectors that benefit from wars that were mentioned above, Healthcare and Biotech sectors continue to look poised for a breakout move higher. Could not ask for a more textbook bull flag in the Healthcare sector. Hope to see you in the chat on Monday and if you have any questions let me know!
From Bennett
Founder Big Picture Trading
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2 comments
Ben is a reported fraud
https://www.securitieslawyer.com/bennett-r-zamani-fined/
https://www.thinkadvisor.com/2022/05/18/ex-morgan-stanley-reps-suspended-after-making-misleading-statements/
Now he works under the name Ben Harrison
Ben Harrison
Telegram : @Earn_passiveincome_daily
Fb Group : https://www.facebook.com/groups/569921655088452
Fb Profile : https://www.facebook.com/profile.php?id=61573974081735
Website : https://firecapitalmarket.com
But originally is : Bennett Zamani
This guy was suspended for Fraud. And now I am one of the people chasing to get back my money since he blocked me when i wanted back
I will continue to post and warn everyone until i get back my money
Ben is a reported fraud
https://www.securitieslawyer.com/bennett-r-zamani-fined/
https://www.thinkadvisor.com/2022/05/18/ex-morgan-stanley-reps-suspended-after-making-misleading-statements/
Now he works under the name Ben Harrison
Ben Harrison
Telegram : @Earn_passiveincome_daily
Fb Group : https://www.facebook.com/groups/569921655088452
Fb Profile : https://www.facebook.com/profile.php?id=61573974081735
Website : https://firecapitalmarket.com
But originally is : Bennett Zamani
This guy was suspended for Fraud. And now I am one of the people chasing to get back my money since he blocked me when i wanted back
I will continue to post and warn everyone until i get back my money