The G20 summit if over and it appears as though disaster has been averted...for now. Statements made from the White House have indicated that tariffs will not be raised for 90 days as China and US work to come to some sort of agreement on trade. The market will likely respond favorably on Monday but how long it will be sustained is questionable. With the passing of President Bush there will be a day of mourning and US stock markets will be closed. After the funeral there will be a official press conference on the G20 outlining events that occurred with various countries and the Trump administration.
There is a potential partial government shutdown still looming out there and even though it sounds like there was some progress made with China it is only temporary. There is nothing concrete in the form of an actual deal so any kind of rally could be short lived. There is still a lot of technical damage out there in sectors and indexes and they remain in the guilty till proven innocent camp but there are some encouraging signs in a few sectors. There is a chance that we could have a nice December and potential Santa Clause rally but as 2019 approaches we need to be aware that there are signs of potentially significant headwinds ahead. The slight rise in unemployment numbers, the GM announcement of plant closures and layoffs, corporate debt, the drop in housing sales, and rising interest rates are just a few things that are troubling to me. There is a significant amount of economic data to digest this week and it will be interesting to see how the week plays out and the data is interpreted by the markets.
The Fed sounding a bit more dovish last week gave the markets a little lift and with the perceived good news out of the G20 it could provide more fuel for the bulls but how long will it last will remains to be seen.
There are several sectors that are of interest to me heading into the last month of 2018 and I go over them in this weeks free video.
Last Weeks Pro Member stocks to watch and their performance for the week
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Highly anticipated earnings
Source Earnings Whispers
Next Weeks Economic Calendar (Markets will be closed on Wed for a day of mourning)