While the market has certainly been choppy, long-term sentiment, as you’ll see in our Advisor Sentiment Barometer skews bullish. But short-term—as our contributors note in our Market Views—it will pay to be cautious, so make sure you have your price targets and stop losses firmly set.
Wall Street’s Best Investments 811
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Market Views
Fear Index Up
The Dow sunk over 600 points yesterday, and the tech-rich Nasdaq also gave up triple digits, as Apple (AAPL) stock plummeted after another iPhone supplier warning. In addition, fellow blue chip Goldman Sachs (GS) suffered steep losses, pacing a broader bank decline. Oil prices were also in the headlines this week, erasing early gains after President Donald Trump tweeted that he hopes Saudi Arabia and the Organization of the Petroleum Exporting Countries (OPEC) “will not be cutting oil production.” As such, black gold suffered a never-before-seen 11th straight decline. Against this backdrop, the VIX—or Wall Street’s “fear index”—surged nearly 18%.
Bernie Schaeffer, Schaeffer’s Investment Research, www.SchaeffersResearch.com, 800-327-8833, November 12, 2018
Remain Defensive
The market was looking better in the middle of last week, but the intermediate-term trend never turned up and the past three days have seen the sellers reassert themselves. Bottom line, now is a time for patience—the market could still be in a bottoming process as the major indexes are well above their October lows, but until the trend turns up, it’s best to remain a defensive stance.
Michael Cintolo, Cabot Top Ten Trader, www.cabotwealth.com, 978-745-5532, November 12, 2018
Oil Uncertainty
U.S. sanctions on Iran are scheduled to take effect on Monday. Some analysts are forecasting that oil prices will jump before the end of the year amid continued geopolitical tensions and rising supply. If economic growth slows, however, and equity markets continue to falter, oil prices could face serious pressure.
Ron Rowland, All Star Investor, www.AllStarInvestor.com, 800-299-4223, November 12, 2018
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THE NEXT Wall Street’s Best Investments will be published December 19, 2018
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