Tuesday, December 12, 2017

Stock market on December 12, 2017: thoughts and outlook

  1. The S&P is extremely overbought (momentum, on a weekly basis). Historically, this has led to positive gains 6 months later EVERY SINGLE TIME. This is because strong momentum doesn't just die. It needs to weaken first.
  2. In the current rate hike cycle, the stock market made a small pullback after every single rate hike. The Fed is expected to hike rates tomorrow....
  3. 2018 is guaranteed to be a volatile year, and there will definitely be a 6%+ correction.
  4. The German stock market will have a choppy year too in 2018. Germany's business sentiment is too optimistic, and every time they were this optimistic, the German stock index DAX fell.

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Submitted December 12, 2017 at 11:47AM by markethistory http://ift.tt/2BX6zuz

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