Founded in 1992, Jackson Wealth Management is an independent, fee-only investment advisor. Founder George P. Jackson has been the CEO/CIO of the firm since its inception with the goal of delivering value to his clients and his associates. 

Securities Offered through Triad Advisors, LLC. Member FINRA/SIPC
Advisory services offered through Jackson Wealth Management, LLC. 
Jackson Wealth Management, LLC is an affiliate of Jackson Retirement Planning, Inc.
Jackson Wealth Management, LLC is not affiliated with Triad Advisors, LLC.

755 Primera Boulevard, Suite 1001

Lake Mary, Florida 32746

Stock Bottom In Today?

October 11, 2018

Thursday, October 11, 2018

 

Dear Friends,

 

As I write this at 12:32pm today, market action, to me, is looking like a bottom. 

 

Obviously we will never know for sure.

 

Let’s look at the S&P 500 index daily chart for the past 1 year.

 

Focus on the blue line – that’s the long-term trend line – notice how over the past 1 year, the market has run up – and then made a correction down – right to that rising 200-day SMA (simple moving average) trend line. Notice the green circle I have made on the chart – the 200-day SMA is acting like a trampoline as it bounces off that trendline.

 

Today, markets have made a spinning top candlestick pattern (see the blue circle below) – that usually is a sign of a trend reversal – the short-term trend is down, and we have these two indicators showing that we may (not guaranteed) be at a bottom:

  • Bouncing off the long-term trendline

  • Spinning top candlestick pattern

That’s the technical analysis – let’s talk about the economy:

  • Consumer prices rose less than expected in a news release this morning – that’s good news. CPI rose +0.1% in September and +2.3% trailing 12 months. Two months ago the trailing 12 months hit a six-year high of 2.9%

  • The 10-year treasury bond rate dropped -1.74% today to 3.169% -- recent increases in interest rates have spooked the stock market

What to do?

  • The long-term trend remains intact,

  • That means we will suggest investors stay the course, or add more moneys to stocks, since they have made a correction

If you have concerns, call your wealth advisor.  1.800-578-3181

 

 

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