Market Update

1/28/2019 1:02 PM

Dear Friends,

What’s going on?

Note the daily S&P 500 index chart below:

  • Good news –

  • Blue circle shows huge selling and the low in December – a capitulation low – people throwing in the towel

  • Market selling above the intermediate term trendline – the blue line or 50-day Simple moving average (SMA)

  • Caution news –

  • Green circle shows market overbought – a sign that markets could pull back or move sideways

  • Orange line – the downtrend line – that’s resistance the market needs to break through

  • Red line = the long-term trendline – the 200-day SMA – market trading below that long-term trend lone – markets need to break through and above the line

Volatility Still High

Below is a 5-year daily chart of the $VIX index

  • Volatility shot up very high in 2018, both in February and December

  • Currently, volatility remains high, compared to the prior 5 years

  • Note the very low volatility of 2017 --- that’s probably why 2018 feels like extreme volatility

  • I believe we could see another volatile year in 2019 similar to 2018

Take a look at our newly released Volatility Target portfolios; designed to reduce volatility when volatility is high and vice versa

  • Call your advisor for more details 1-800-578-3181x0

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. 

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Advisory services offered through Jackson Wealth Management, LLC. 
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Jackson Wealth Management, LLC is not affiliated with Triad Advisors, LLC.

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