Fed Market Trade: Gravy Train Meets Fish In Barrel
The next two trading days will be quiet before we move into 2020.
My guess is stocks should go up the next two days as funds "window dress" which means funds want to show that they were long stocks that did well in their year end reviews.
As you know from the last Fed meeting I was calling for a bullish move because of the new stimulus added. (here, here, here)
The Fed plans to continue its support of the repo market in early 2020 (see here). That's been a big boost to the market and should continue to be as long as they continue.
While I like to look at short term technicals a lot I think that is a little bit out the window right now and what's more important is the shooting-fish-in-a-barrel trade. That means anything should work. The combination of the Fed pumping QE-like money in a good, low inflation economy and a trade deal, the market can still have legs.
Also remember with a trade deal now it's an added boost. The economy and tech held up fine with a trade war in 2019. Now with it resolved it creates easy-comparisons from 2019 and more growth in 2020.
I'm still watching for a change in that technical trend. I'm not getting sold on anything. Nor am I changing my stance much, as you see so I'm not increasing my exposure as we move up. I'm just saying that I'm as bullish as when we started calling for this move around the Fed meeting.
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We just spoke to a ton of companies. See what are take is and what stock's we loved, liked or didn't like. We recently spoke to QCOM, SQ, TER, MSI, TTWO, ATVI, ROKU, AAPL, TTD, TWTR, SWKS, TSLA, FTNT, ANET, INTC, TWLO, WDC, JNPR, SPLK, MSFT, LRCX, FB. Any questions on them let me know.
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