Market Commentary May 26, 2019

The Trading Daily Market Commentary features a summary of selected market segments as well as economic matters. Its content of interest is made available to all traders and investors at large

Worthwhile market reading for all, we wish, though particularly Millennial’s, as we track the “Death of Market.”  As the investing and trading trip evolves, we come to some fascinating “facts” about the future which is here.

While the mainstream media continues to criticize any retraction and future worries of downturns in equities and economies on the America - China trade wars as well as tariffs, however, the vaster fears are barely told of the 250 trillion dollars debt bubble which keeps increasing that has raised equities markets and expanded global economies.

The IMF (International Monetary Fund) has advised that extremely high corporate debt has expanded to 70% of the entire global economy and “There are growing signs that this credit cycle may be maturing and risks of an economic slowdown are rising.” Showing the United States and China as the most exposed countries, the IMF advised that companies are proceeding to borrow even more even their profitability drops.

Additionally, debt-bubble signals were declared by Bain Capital, whose co-managing partner, Jonathan Scott Lavine wrote that “increasingly aggressive” private equity organizations were taking on massive debt to obtain MA (Merger & Acquisition) ventures, emphasizing the risk of a crash in the M.A. sector in the case of a sudden market downturn.

Hence, should interest rates increase, consequently will also the debt burden. Therefore, the likelihood of higher interest rates remains negligible.

In September of 2018, before the S&P hit a record high, Trade Selector Signal had projected a significant downturn in the market. Then the Fed started a policy to boost interest rates throughout 2019 aggressively.

Stock Market Crash

Stock market(s) across the world tanked, many markets sinking over 20% and going into bear territory. In fact, the Dow Jones had its worse December performance since the Great Depression of the 1920s.

The equities crash in December last year was basically the prelude that was leading towards the biggest crash in history. The path by the way which is going to continue this year. 

Hence, that was only first leg down, and the leg two will be significantly very much graver. It is a copy of the grand crash of 1929. That colossal crash is concerning what is to be endured in 2019, however, much worse.

Whether will occur in June, July or later part of the year it is hard to tell. As the old saying goes, “It is difficult to make predictions, especially about the Future,”  But our task is easier nowadays in a world of instant data information and databases. This enables us to push the “future” a much closer, permitting accurate focus and apparent review.

This being a holiday weekend in the U.S., we wish our readers in America happy Memorial Day - Enjoy the market commentary offered here and will share many further areas of interest that might be usefully fit.

As The Market Turns

After the sell-off observed in the Thursday session, equities recovered some ground early on, on Friday. Nevertheless, the key indices were unable to support the opening upward movement and dragged back down well off their daily highs.

The major indices, however, managed to finish the trading session moderately higher. The DJI increased 95 points or 0.4% to end at 25586, the Nasdaq 100 edged up 7 points or 0.1% to conclude at 7301, and the broader S&P 500 index inched up 3.8 points or 0.14% to close at 2826.

Even though with the uptick on the trading session, the significant indices advanced distinctly lower for the entire week. The DJI slid by 0.7%. The Nasdaq 100 dived by 2.3%, while the S&P 500 index plunged by 1.2%.

Trading Signals On Demand And What Should You Know!
Trading Signals On Demand And What Should You Know!The TradingSig signals on demand of the Trade Selector Signal (TSS) system are based on functions such as measuring the rate and speed of price change, volatility, momentum, and harmonics. Then filter the noise and provide a forecast...