[Market Outlook] Lots of Noise, But What Is The Data Telling Us?

How to Invest in this Economic Scenario! [Company Logo] Lots of Noise, But What Is The Data Telling Us? How to Invest in this Economic Scenario! By Donn Goodman and Keith Schneider [image] Hello Gaugers. Hope you had a good, productive, and profitable week. There was an abundance of earnings announcements this past week as well as updated economic information. Can we evaluate how healthy companies are from their earnings announcements? Can we interpret the state of the economy from this information? Let’s explore. Last week we provided 8 reasons why we thought the market could continue to climb higher or climb the wall of worry. The beginning of the week looked shaky from negative expectations from upcoming tech earnings. We witnessed a couple of heavily negative days. Some traders suspected we had finally broken out of the sideways malaise and that the S&P 500 was headed South. Not so fast. Recall some of the reasons we wrote about last week suggesting that the market might continue higher. A refresher: - The PMI (Purchasing Manager Indicator) had turned up. - Other economic indicators were looking more positive. - The number of S&P (and NDX) stocks over their 50-day moving average were increasing. - Negative sentiment readings as well as large positions of puts being held by traders. This could trigger a short covering rally (we suspect it may have contributed to Thursday’s big day up). - Active investment managers are putting $ to work and have committed more $ to stocks (less cash holding by institutional managers). - The 128 days of an upward move. That is a positive indicator that the market is on solid ground and can move higher. - Favorable investment period. November to April (especially in pre-election years) is a positive period for stocks. - The last week of April tends to be good historically. Also we were in the sweet spot of the month when retirement money and rebalancing takes place. After a few days early in the week of weakness, Thursday began with an economic update on GDP. Forecasted to come in at 2.0% or higher, it surprised everyone coming in weaker than expected at 1.1%. Most analysts and talking heads interpreted this as a slowing (stalling) economy which may help the Fed to pause sooner than later. Bad news was good news! The market celebrated the second best day of 2023. See chart below: [image] The S&P finished the week up 1.0% and the tech heavy QQQ was up a little better than 1%. It was a good week to turn off some of the news (and noise) and stay invested. [image] Use the links below here to continue reading about: - The effect of earnings season - The Fed expectations - The danger zone - Big View bullets and video analysis - And more [Click here to continue to the FREE analysis and video.]() [Click here to continue to the PREMIUM analysis and video](. Best wishes for your trading, Donn Goodman CMO, Market Gauge Asset Management Keith Schneider CEO, MarketGauge P.S. When you’re ready, here are 3 free ways we can help you reach your trading goals… - [Book a call with our Chief Strategy Consultant](=), Rob Quinn. He can quickly guide you to the resources that you'd like best. - Get the foundational building blocks of many of our strategies from Mish's book, [Plant Your Money Tree: A Guide to Building Your Wealth](, and accompanying bonus training. - [Review quick descriptions]( of our indicators, strategies, services and trading systems here. Get more - follow us here... Twitter [@marketgauge]() and [@marketminute]( and [Facebook](=) To stop receiving this go [here.]() Got Questions?Office hours 9-5 ET (New York time) Email: info@marketgauge.com Live Chat: Go to bottom right corner of our [home page.]() Call: 888-241-3060 or 973-729-0485 There is substantial risk of loss associated with trading any securities including and not limited to stocks, ETFs, futures, and options. Only risk capital should be used to trade. Trading securities is not suitable for everyone. No representation is being made that the use of this strategy or any system or trading methodology will generate profits. Past performance is not necessarily indicative of future results. To unsubscribe or customize your email settings, [click here](). "Market Intelligence at a Glance + Tools For Serious Traders" [Unsubscribe]( MarketGauge.com 70 Sparta Ave, Suite 203 Sparta, New Jersey 07871 United States (888) 241-3060