It’s all good, make that great, when there’s good news on the frontlines of trade war talks.
That’s where we are and where we’re going, from good to great, if the latest news and commentary from Wilbur Ross is for real.
Markets were already breaking out of their sideways slump, forming bullish ascending triangles, and breaking up through their resistance at all-time highs. That’s good.
Earnings have been consistently, to the tune of better than 75%, beating consensus estimates. That’s good.
The IMF came out last week calling for 3% growth globally. That’s good.
Markets have been climbing every wall of worry as if there were no worries. That’s really good.
In fact, there’s so much good out there that markets only needed the right words from someone, almost anyone, that trade talks were actually occurring and some, any, finish line, even a quarter of the way around the track, was in sight. And that’s what they got over the weekend.
What Markets Could Do Next
As we make new highs and things look good and, in some ways, great, money that’s been parked on the sidelines is going to get put to work.
Money managers are mostly behind the curve here. They’ve mostly missed this breakout, having sidelined by sideways markets that could have gone either way.
Now, it looks like there’s a trend and it looks like it’s upward. And if it continues this week, which it should, those money managers are going to have to get into the game. In fact, they’re going to be the game, meaning they are the ones who are going to have to get in this week and they will drive momentum.
And that’s all good.
The forecast is for higher highs this week, driven by sidelined money with the possibility of a storm of momentum.
It’s all good, until it isn’t. But right now, there’s no “isn’t” in sight.
To see the entirety of the Capital Wave Forecast including how to trade this week, Money Zone subscribers can read on here.