The Fed will announce a possible rate hike today, the consensus believes they will raise rates by a quarter of a percent. No one knows how the market will react but here is how the SP500 reacted the last three times; 12/16/2015, 12/14/2016, 3/15/2017. One big pullback, two shallow ones. The good thing is, that we don’t need to know.
We are also coming into the second half of June which historically has been weak. Here is how the average June has played out since 1950 and in the past 20-years, chart by Ryan Detrick.
On the bright side, the Small Cap index (Russell 2000) has broken out of a 6-month base and it has been holding up well. The Russell 2000 has been underperforming relative to the SP500 and the Nasdaq. If the Russell 2000 continues to act well it will broaden out the breadth and finally, we can stop hearing about all the breadth negative divergences. Small caps is where the big percentage moves happen. This looks like the beginning of something bigger, and that’s a big plus.
Frank Zorrilla, Registered Advisor In New York. If you need a second opinion, suggestions, and or feedback in regards to the market feel free to reach me at email@example.com or 646-480-7463.
We live in a world in which we are bombarded with information, tweets, blogs, etc., content is the new salesman, content is the new marketing, content is the new networking. With information being so readily available, bloggers try to differentiate themselves with their writing skills, volume, and consistency, putting out blog posts to meet quotas. We are seeking to stand out from the crowd by showing performance, by taking all the information and seeking alpha, that’s the sole purpose of the blog. It won’t always be pretty; it’s never easy, and performance is spotty, but we seek superior risk-adjusted returns, not notoriety for our writing skills. If this is something you can relate to, then this blog is for you.
This information is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. None of the information contained in this blog constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. From time to time, the content creator or its affiliates may hold positions or other interests in securities mentioned in this blog. The stocks presented are not to be considered a recommendation to buy any stock. This material does not take into account your particular investment objectives. Investors should consult their own financial or investment adviser before trading or acting upon any information provided. Past performance is not indicative of future results.