SPDR S&P 500 (SPY)

[ITMS]

This Blood-Bath Decline Will Lead To Another Monster Buy, But Can You Spot The Turn?

Finally, we are starting to see a little fear on Wall Street. Yes, this could be the perfect storm. After all, we have yields rising on the 10-year U.S. Treasury Note, U.S. / China trade wars, a stronger U.S. Dollar, weak emerging markets and a never ending investigation against President Trump. There are actually even more worries in the pipeline, but these are probably the most important concerns that affect the stock market.

Traders and investors must now be patient and start to look for the potential opportunities to arise. We must realize at some point the Federal Reserve will probably stop raising interest rates. Eventually, the United States and the Chinese government will come to some type of an agreement on trade and intellectual property, both countries rely on each other for economic growth. The emerging market economies will find a bottom sooner or later, but this will probably be dependent on currency, interest rates and a few other factors. As for the investigation into the Trump administration and Russian collusion, while it gets more bizarre more the day and actually seems far fetched at this stage that it will turn into something major, this is still a wild card for the markets.

The bottom line is that the corporate tax rate in the U.S. is 21.0 percent. This makes the United States one of the most competitive countries in the world right now. Once these and other problems have some clarity and resolutions the markets in the United States should continue to expand. Now please understand, if these problems are not solved then there could be some real repercussions out there for the stock market. Until then, stay nimble and look for the charts that are signaling a bottom. After all, the S&P 500 Index is about 4.0 percent off the recent highs and still positive in 2018.




Nicholas Santiago
InTheMoneyStocks