Weekly Update 2/22/2019 Markets Meander Higher

Weekly Recap                                                                        

S&P 500                +%

10 Year Treasury   +%

Gold                      +%

Volatility              -%

Weekly Update: Markets Meander Higher

It seems like this has been the longest, most snowy/icy winter I can remember.  We are ready for spring.

It was a week of slumbering hibernation for the markets.  Volatility continued to plow downward while equities and bonds both meandered higher.  As we mentioned last week, according to a myriad of technical measures, stocks appear overbought.  For example, the percentage of stocks within the S&P 500 above their 50dma is now above 90% (chart below).   This is not to say that stocks always pull-back while such conditions are present; however, the magnitude of returns to the upside are usually muted over the following months. 

In the final week of February markets will look for trade developments as the March 1 trade deadline for increased tariffs approaches.  If we do get a deal, will we see a sell the news reaction or continuation of this near-term rally?  It is important to keep the long-term in perspective and observe the short-term gyrations and news with only passive interest.  Hasty action within the realm of investing and financial planning is most often unwise.

Enjoy your weekend.

Zach and Dave

Calibrate Wealth
515-371-5316  

https://www.calibratewm.com/blog-01

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