Weekly Perspectives: The trend is your friend except at the end where it bends

Weekly Market Outlook For November 11 – 15, 2019
November 9, 2019
Weekly Market Outlook For November 18 – 22, 2019
November 16, 2019
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Weekly Perspectives:  The trend is your friend except at the end where it bends

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The trend is your friend … 

 

The markets continued to grind higher as the DIA finally joined the SPY and QQQ this week to hit new all-time highs.  

Year to date the SPY, QQQ, and DIA are up over 23%, 30%, and 18% respectively.

In this week’s video, I discuss how the indices are now exhibiting trending and herding characteristics and this means you’ll want to fight the inclination to fight the trend.  However, remember the trend is your friend – till the end.

Watch this week’s Weekly Outlook video to see the setups and levels we’ll be watching.

In this week’s video, we look at the technical outlook for the VXX SPY QQQ IWM DIA EEM TSX TLT GLD BTCUSD ETHUSD EEM and more for the week of Weekly Market Outlook For – November 11 – 15, 2019.

 

Has the world gone mad?

This past week renowned fund manager Ray Dalio didn’t mince words in a post on LinkedIn about the paradox of free money in the global economy he titled “The World Has Gone Mad and the System Is Broken.”

It’s not difficult to concede that the phenomenon of free money is responsible for sagas like WeWork and the number of IPO duds we have seen in 2019.

In addition, Dalio posits that in an era of low/negative interest rates we are increasingly seeing cases where “venture capital investors are pushing money onto startups that don’t want more money because they already have more than enough, but the investors are threatening to harm these companies by providing enormous support to their startup competitors if they don’t take the money.”

This doesn’t necessarily mean that this is bad for the equities markets if anything we may see an acceleration in these structural conditions and consequences.

“This whole dynamic in which sound finance is being thrown out the window will continue and probably accelerate, especially in the reserve currency countries and their currencies.”

If you follow Dalio then you know that with the new decade approaching all of this falls into his wider call for major paradigm shift around the bend.  

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Weekly Perspectives: The trend is your friend except at the end where it bends

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