Yesterday, Hammer and I filmed a quick video for the new Outsider Club Chart Wars series. Chart Wars will be a regular feature to your Outsider Club subscription. Every Sunday, the two of us will present a chart for your investing and trading pleasure.
I’m not gonna give the whole thing away because you really should check out what we said yesterday. Here’s the link https://www.youtube.com/watch?v=ADgTWVgnHuw
But the gist of this edition of Chart Wars is that we both believe this stock market sell-off has hit levels that are extreme enough to get a pretty decent bounce. Hammer reviewed the cheat for the S&P 500 and offered up a solid game plan for how to proceed – and no, it’s not the same old “buy and hold” tripe you get from most of the mainstream financial media.
The simple fact is that the global trade war launched last week will have lasting damage. And that’s in part due to the unpredictable nature of the Trump administration. When you know the president can start lobbing hand grenades at any moment, it is difficult for businesses to maintain the status quo. This means that hiring and investment decisions have to be made with an eye on what the downside risks are…
Even though last week’s Non-Farm Payrolls was a solid positive surprise, it is possible that the momentum will be short-lived.
Perhaps more importantly, this same uncertainty hangs over every country on the tariffs list (even the ones populated only by penguins). They’d better be moving fast to get deals done with the Trump administration.
Vietnam and Taiwan apparently aren’t wasting any time – word is both countries have said they will end all import tariffs. The EU is reportedly considering a delay in their retaliatory actions. No word from the penguins just yet…
It’s important to understand the dynamics of an oversold bounce. It’s also important to understand that the unbridled bullishness that’s underpinned stock prices for the last couple of years is not going to come roaring back. That will take time.
Again, check out Chart Wars, and give us a like and maybe a nice comment!
Cheers,
Briton Ryle
Chief Investment Strategist
Outsider Club
X/Twitter: https://twitter.com/BritonRyle
