Big Picture for the week of 10-14-19

Here are the “Big Picture” items for the week coming up:

1) “Phase One” of China trade deal agreed to in principle – needs to be “papered.”
>Caused market rally on Friday

2) Q3 earnings season in full swing
>Watch Banks in particular
>JPMorgan Chase & Co., Goldman Sachs Group Inc., Citigroup Inc. and Wells Fargo & Co. report results Tuesday. Bank of America Corp. follows on Wednesday and Morgan Stanley on Thursday

3)Sector rotation is taking place, from growth to “safer” sectors like Real Estate and Utilities.

4) Investors are flocking to money markets at the highest rate since the financial crisis.
>Money market funds have pulled in $322 billion over the past six months, the fastest pace since the financial crisis.

5) S&P 500 for 2019 is stuck in a channel, between support and resistance
>“Stocks, in fact, have been on a roller coaster for the past year, tumbling at signs of a break in the U.S.-China talks then rallying on any ray of hope” (CNBC)

Here is this week’s video update where I review these items and the latest technical analysis of the S&P 500 chart:

As always, I welcome your questions, comments and feedback.

Dean

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