Archives for April 2019

April 2019 - Page 15 of 15 - Money Morning - Only the News You Can Profit From

Here's When the Market Starts Powering Higher Again

Why are stocks moving sideways?

It's the uncertainty… I'm sure of it.

There's been a switch in the leadership of the market over the last month. That is to say, different kinds of stocks are driving it higher or lower.

Small-cap, housing, and semiconductor stocks reigned supreme in February as they moved higher. But now, the market is being led by utilities, consumer staples, and real estate.

Did you catch that leadership list? Do you know what they have in common?

They are all defensive sectors – places investors go to hide it all away during (or before) a market correction.

The confident up and down moves the major indexes had been making are now turning into a rather wimpy game of tug-of-war. We saw an advance in the S&P 500 all the way up to 2,850… only to see a quick reversal as traders shot into the market to take profits.

That's a timid move that's put us in another technical battle with 2,800. Not great.

Another contributor to the lack of direction? No catalysts.

Think about it: A month ago we were still riding a wave of earnings results that helped pull additional monies into stocks. Daily "trade war" headlines provided a constant stream of fuel for the markets' fire, sending it higher and lower.

In short, there was a lot more to look at if you were trading.

So, is this a market that you walk away from?

Not at all! And I'll show you why...