Big Picture

Our overall Primary Trend Indictor moves to Neutral.   We like the way stocks and stock markets are beginning to show a basing pattern and holding support at the 2950 level on the S&P500.  With significant high level meetings by the Federal Reserve and G7 constituents over the weekend some chances exist that investors could be positively surprised with action on interest rates, or trade negotiations.   

Changing Fundamentals

Saturday & Sunday:

Leaders of the G7 economic superpowers meet in France with investors focusing on communication around trade and tariffs.  

Focus List

 

Global stock markets are trading higher on a rebound in sentiment and potential for surprises that could come out of the weekend symposium of Federal Reserve members at Jackson Hole, Wyoming.

The S&P500 is at a unique juncture, with a good chance it goes for a move higher towards the 3000 level.  A catalyst for this could be the Jackson Hole Symposium led by Fed Chairman Jerome Powell – investors & speculators may be bidding up stocks in anticipation of monetary policy moves that could support President Trump’s policy objectives.  An announcement such as a snap interest rate cut or manipulation of the balance sheet of any kind will drive up stocks and send down bonds in a big way.  Trump has been tweeting up a storm and really applying pressure against the Fed to act by reducing rates a full 1% and also reapplying quantitative easing to cool the strength of the $USD versus a basket of global currencies.

Trade disputes with China and a looming Brexit which could cause rifts across global markets, are an investors biggest macro risk.  Technicals are showing support around the 2900 level on the S&P500 with momentum and money flow increasing.  We are now increasing our overall Primary Trend Indicator to Neutral from Negative based on improving price action and prospects for monetary stimulus by the Federal Reserve.

 

Recently Featured:

  • Zyme Networks $ZYME – the stock has broken out to new all time highs above $35 on strong volume with On Balance Volume rising to new highs confirming the money flow into the stock.   Sebright Capital highlighted $ZYME at $24 back in June.
  • ROKU Inc. $ROKU – The stock is turning up after a short term selloff which saw the stock come back from $143 to $130.  Traders will likely push the stock to retest $143.  Sebright Capital has featured $ROKU since $50 and as recently as $100 before its most recent earnings report.
  • Enphase Energy $ENPH – The solar power stock is moving to new all time highs above $33 on continued strong momentum and money flow, the company is a leader in solar panels, power cells, and power storage.  Sebright Capital recently highlighted $ENPH at $30.

 

Featured Stock:

Twitter Inc $TWTR – The stock is trending higher on continued positive company and sector fundamentals.  Twitter announced it successfully uncovered a series of accounts hosted by government sponsored agents that were meant to spread false news-flow on the Hong Kong riots and put undue focus on the countries citizens.  This event highlights the companies efforts to combat such intentions which investors and the markets will take positively as proof social media platforms algorithms are making headway.  Price action shows the stock making higher lows and higher highs, a good sign that the stock is gathering momentum for a bigger overall move.   We like the stock and it ticks off positive on all of our 6 Steps Factor Process.  Investors could see $TWTR moving into the high $40’s in the coming weeks.