Weekly Briefing 1/17/22 - The Forecast

Weekly Briefing 1/17/22

Weekly Briefing 1/17/22

Major indexes are currently in downtrends, but we still expect higher highs to in the Dow, S&P, and Nasdaq before the first quarter of 2022 ends. However, expect to see rallies continually sold into as smart money continues their distribution this quarter as a multi-month peak forms in the coming weeks.

Market Recap:

We expect Omicron to help usher in an end to the pandemic and likely create a sell-the-news event in major indexes, which may confound many investors when it occurs. Sometimes good news for the economy is bad news for the stock market and we expect that narrative to hold as COVID hopefully subsides into Spring 2022.

 The weekly number of new jobless claims rose unexpectedly to 230,000, the IBD sentiment number dropped and retail sales all missed with bearish readings. The inflation numbers last week remained at decade highs, but showed some signs of improvement in the December data.

The short-term technical picture is showing the Dow as the only index still trading above its 50-day moving average, while the VIX has retreated under 20. More whipsaw trading action is expected into the end of the month. Economic data this week remains light ahead of next week’s Fed meeting.

Markets are closed today in honor of Martin Luther King Jr. Day and our next Nightly Briefing will subsequently come out this evening. Our members’ response to our new crypto service has been extremely strong in anticipation of a powerful altcoin we expect to commence near month-end, producing powerful moves and large gains for members. There is still time to position capital in key altcoins before they explode higher. Chasing price as altcoins rally is never a good idea. We prefer to buy them while they sleep and sell them when they leap.