I am all set with my stock market newsletter, so thought I would post a quick commentary on how the U.S. stock market looks to me right now.

In spite of all the doom and gloom over the summer regarding the China trade deal, and then the recent hysteria about impeaching President Trump, the stock market looks pretty good to me.

We’ve had a nice rally over the last couple weeks, at the end of what is typically a seasonally weak period for the stock market.

We are now heading into what is typically a seasonally strong period for the market, and the market averages look good.  At the moment, the S&P 500 appears to be poised to break out to new all time highs this week.  That should be followed quickly by the Dow Industrials and the Nasdaq.

stock market, S&P 500

This is a daily chart of the S&P 500 going back a bit over a year.  The yellow line is the 200 day exponential moving average.  The index had bounced off of the average three times in the last five months, and is now just over 3 points below a new all time closing high.  This is a pretty nice looking chart.

I am also encouraged by the performance of economically sensitive stocks, such as the homebuilders.  They have been on a tear as of late.  Also, the Dow Transports have rallied sharply and appear to be ready for a multi-month breakout.

In just a few weeks, Thanksgiving will be upon us, and we’ll be in the heart of the holiday shopping season.  If we get good reports from retailers, the shippers, and Amazon, you can expect a pretty nice rally.

Lastly, after a few weeks where many of the stock market leaders of 2019 corrected sharply, forcing momentum traders to exit positions, I am now seeing opportunities in some new names.  This is a sign of a market getting ready to start a new leg higher.

A few of these new names include LPSN, MODN, JYNT and HEBT.

Thanks for reading!