Weekly Market Update for January 20, 2023, from DeWayne Hall:
With companies beginning to report their 4th Quarter earnings, or lack thereof, and Janet Yellen reporting yesterday the U.S. Treasury has initiated “extraordinary measures” as the debt ceiling was hit once again, one would assume the stock market would be dropping like a rock.
Yes, stocks are definitely down the past few days. After a fast and furious break above some fairly strong resistance early this month, a pullback is warranted- almost welcome in fact. But this pullback has been shallow and orderly, and that has made us sit up and take notice.
Please don’t read into this that we believe the bear market is in any way done. We remain in the camp the market has a good chance to go lower this year, maybe scary low. But based on the strength stocks have displayed in early ‘23, the bear may be on hold for a few weeks.
And for active traders, a few weeks is just enough time to make some quick bank by trading in and out of names showing strength post-earnings. Sort of hit-and-run style trading. Just be sure to take profits when offered, looking at them as nice gifts before the big bear reemerges.
The views expressed represent the opinion of Good Life Asset Strategies, LLC. The views are subject to change and are not intended as a forecast or guarantee of future results. This material is for informational purposes only. It does not constitute investment advice and is not intended as an endorsement of any specific investment. Stated information is derived from proprietary and nonproprietary sources that have not been independently verified for accuracy or completeness.