Hello, askSlim members!

MarketWeek “minutes” – 10/9/20 has been posted. NOTE: Click on underlined titles to open video topic starting points. Enjoy! 

NOTE: Click on underlined titles to open video topic starting points where Slim begins his analysis

WEEK IN REVIEW

• Market Recap and General Outlook
  
  • Investors have been focused on the COVID-19 rescue plan
  • Tuesday saw a very large decline
  • Fed’s Powell said we would see ‘recessionary dynamic‘ without fiscal stimulus
  • Trump called for no more negotiating stimulus causing a drop
  • Buyers came in Wednesday gaining back most of the market’s losses
  • Markets moved up Thursday as Trump said he would restart talks on rescue package
  • Friday brought some pretty good upside action as rescue package got closer
  • Stock market appears stuck in a range between $3200 – $3600
  • The stock valuations we are seeing are false
  • Velocity of Money Chart
• Index and Bond Updates
  
  • Major indexes up 3%-4%
  • RUT up about 6.5%
  • 30-Year bond market down 1.5 points
  • 10-Year yields up 8 basis points
  • Gold up big on Friday, up $24 on the week
  • The dollar is likely to get much weaker, down .8%
  • Oil market is up about $4 on the week

SHORT TERM VIEW – FIVE MAJOR MARKETS

• Light Crude Oil- (/CL)
  
  • Likely to break out through resistance over $41.65 before a correction
  • Momentum has improved but choppy
  • A buy area is likely to set up after correction
• Gold – (/GC)
  
  • Looking for a little more upside before a correction over the next week
  • Buy zone is around $1905
  • Short term momentum is negative but beginning to turn up
  • Upside target is around $1967 or higher
• US Dollar – ($DXY)
  
  • Looking for a few more days to the downside
  • Downside targets around $92.88 – $92.35
  • Likely to bounce into sell zone after the few down days
  • Big downside risk into late October
  • Negative momentum is likely to come back quickly
• 30-Year U.S. Treasury Bonds – (/ZB)
  • 72 – 69’50 are the downside targets over the next few weeks
  • Multiple time frames point to the downside
  • Late October – early November low is likely
• S&P 500 Index – (SPX)
  • Upward target is now around $3507
  • Likely to move up quickly if stimulus package is passed
  • There is a lot of risk coming in a couple days
  • Downside targets around $3380 – $3315 in the next week and a half
  • Likely to see a range between $3507 – $3315 towards the election

That’s the show for this week! 

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