Happy Saturday
Last week I had some hope for the markets and a Thanksgiving holiday week bounce.
Unfortunately, hope did not turn into reality as the markets put in the worst Thanksgiving week performance since 2011. This was a bit of a setback and has clouded the vision of a potential end of year rally but there is still a chance it may happen.
The negative tone in the markets is strong and their is certainly enough technical damage to justify it with many big names in bear market territory. This could be the beginning of a new secular bear market and things could get far worse before they get better. However, the stars could also be aligned for an incredible rip the shorts face off rally. There has not been an extreme capitulation sell off yet and if we get one and there is enough fear out there it could lead to a big snap back. What we don't want to see is a continuation of the slow bleed lower as that could keep the bears in control for a much longer duration as the selling remains very controlled and not emotionally driven. The QQQ's took out the recent October low and that may happen in some other indexes but that may be just what is needed to have a nice snap back bounce rally if with some positive news events.
This week we have the Fed minutes and the G20 meeting which starts on the 30th. If we get a more dovish Fed and some positive dialog with China there are several sectors that could be set up for a nice double bottom bounce play.
A few sectors in focus this week are the casino, hospitality sector with a conference this week, the cannabis space with potential legislation coming out of New Jersey on legalization for the state and Washington with the farm bill to legalize hemp, retail after the numbers start coming in from Black Friday and Cyber Monday.
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In this weeks video I go over these and the other sectors that are on my radar
Last weeks pro member Stocks to watch and their performance for the week
*To get the full list of stocks to watch for trading and investing every week and every morning before the open become Alpha Wolf Pro member for only $197.00 a year. https://www.alphawolftrading.com/membership
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Highly anticipated earnings
Source www.earningswhispers.com
Economic Calendar for next week
Source www.marketwatch.com
