Also in this playlist...
This transcript is automatically generated
Broke the rules on a series not I want to know if stocks are languishing slightly here because the Federal Reserve is a lot of people were expecting.
Did not turns out lay out its plans are the tools it has at its disposal for if needed another round of stimulus know how much markets.
Stimulus are out there need to exactly so let's not get more on -- -- what's behind the rally.
As it stands even though it has evaporated something really how should you be investing in this market climate Ryan Detrick senior technical strategist at shapers investment research she joins us now so.
What do you think of that question we got the Fed statement the accompanying statement rather with the decision -- press on the rates side.
But -- son.
A lot of talk leading into the meeting was you know will the Fed give us kind of verbal stimulus talk about the tools it hasn't didn't.
No they didn't -- -- the statement didn't but let's be honest and up 45 minutes in the Q&A that's we're -- ask -- question so maybe it will give more and answer but all in all and I was on because last month and I -- overall expectations on the stock market are extremely low.
We had a pretty good -- obviously in October now we look at things from a purely technical point of view at 1220 area was the area on the S&P that held.
Numerous times as resistance and now we went back down to yesterday and -- so to me.
Yes is a public question marks a lot there's some uncertainty is the key -- nonetheless the Dow slope for the year and we got such low expectations entering a bullish -- -- timeframe.
We're optimistic with any good news we could have a continue -- into the into the year here.
You know at a two month period of a lot of volatility -- that sell off in July.
-- and as -- -- to get to the next level in October.
-- hold that level sort of been at it in that becomes more on the floor now for the next level or period of volatility what we bouncing and in another range.
That's exactly right -- level should probably holding you talk about November December the last twenty years closer to the strongest months -- 80% of the time up about 6%.
So we're in in the historically timeframe.
Again look at this the cover of the economist recent comments magazine has had nowhere -- -- in regards investment lightning bolts hitting men running with suitcases this whole lot of fear out there and rightfully so is lot of scary things.
We have a Dow up for the year and S&P up -- 4% over the last four months those are great returns -- aware but in the face of all the negativity we think any positive news we saw what happened October with just a little -- -- good news.
And any more good news and the bad news sure we -- -- but I think the biggest risk potentially is more market melt up in a market meltdown bad news yes we'll go -- well what more and any good news for the lower expectations here.
Lowered expectations have -- stock market right I slightly disagree with you because where else you can which money these days.
On rates -- historic lows commodities are all over the place and markets are so volatile -- -- It's almost like equities are more frustrating than having low expectations because -- can't.
Determine where things are going from.
One day to the next well that's exactly right a lot of.
We're saying is one -- most frustrating markets last 3040 years and there's construed as the news is what try -- and obviously we're saying you should be over expose equities without question you don't bond yes that bond yields are low on bonds got a good rally still shovel money in bonds and cash some.
You know some gold -- gold to be really good place but overall look at specific sectors look at the retail sector the XRT it's almost 8% year to date very quietly.
One of the strongest sectors -- all we hear about as the job issues in the real consumer issues they're consumer stocks are doing really well retail stocks are doing very well.
That's some potentially under the surface we think a good sign for potential that's market that's an area you wanna see leading and we are seeing that quietly here.
We've watched a lot of these banks to the downside certainly Bank of America have been in the news a lot.
You still are are bearish on banks -- you don't think it's -- time in jumping you know what it was say six dollars -- Bank of America this is where I'm -- in this my entry point you don't think so that's right for most this year we have been bullish but banks specific -- area we just simply haven't -- -- -- comes expectations look at the overall sentiment towards a lot of banks we see a lot of optimism.
We price action with optimism coming in lot of arguments on fundamentals -- of sort of valuations being low.
We just simply don't buy that we -- -- back in 2008 as you know the excel left.
The dropped about 89% I'm not saying that's what happened again.
But all I'd rather -- sector is going higher -- skepticism such as consumers.
Then a sector is going lower with optimism that's that catch a falling -- mentality and -- you get impressive bounces.
On all financials and banks specifically we would see price -- -- avoid him here.
I dated technical analyst we thoughts on the stock market used to be right that.
It was such a strong indicator of things to come especially by way of the Connie -- talk about street then.
The consumer and retail and you look at the bigger economic picture with unemployment so high it's almost like there's a disconnect there.
Now you're exactly right and that's interesting one area that the credit markets the last couple years -- credit markets and actually one of the things that have been leading us.
Look at junk bonds right now right -- you want it actually bounced back up significantly helped with a were pre summer.
Now that's another reason I'm bullish they broke down.
Brown -- -- so in the market broke down but the human any activity stock buybacks equipment markets of in my opinion continue to be working.
That's a really good sign frightening for the economy over the next 36 months and hopefully also -- stock market.
-- let once have you here right you bought -- new can of skyline chili because -- from since that is and to repay the favor here you can have this can't.
Of Pringles are lawyer and I know Soledad -- in particular really never gave -- -- Thanks guys -- exactly hell.
Filter by section