We are offering this week’s market update free of charge
Corporate earnings will always influence the stock market. This past week saw earnings from Exxon, Meta (Facebooks parent), Chevron and Astra Zeneca as well as many others. This week we’ll hear from the likes of Apple, Amazon, Bausch and Lomb, Jet Blue and Moderna as well as dozens of others. There will be updates from the June labor markets concerning job openings and labor turnover as well.
The markets continued their bullish run and saw the Dow Jones post a gain for the week just over ½% at +.66% closing Friday at 35,459. The S&P 500 closed at 4,582, +1.01% for the week. The NASDAQ on Friday’s close stood at 14,316, a gain for the week of 2.02%. The Russell 2000 which tracks the Small Cap markets closed the week up 1.09% and 1,981 by the 4pm close of business Friday.
Yields on Treasuries continue their inverted posture. 2-year Treasuries – 4.87%, 5-year at 4.18% and 10-year – 3.95%. Although the Federal Reserve issued an opinion that recession fears may not be as alarming as previously thought, we still are compelled to remain vigilant as to the possibility. Keep in mind that data from the Federal Reserve has shown that an inverted Yield Curve has accurately foreshadowed all 10 recessions since 1955.
Last week we spoke about the possibility of profit taking happening and despite the high degree of likelihood of that happening, we did not witness such last week. The possibility of higher highs in the markets seems distinct.
The Small Cap markets are testing their highs as well and should we see a breakout here (which we anticipate) will be great news for the bulls. This would confirm a solid rally in the markets as a whole and would signal that Small Caps are joining the current market uptrend.
Consumer confidence has reached a 2-year high which is a sign that the American public is feeling good about the economy and data provided by the American Association of Individual Investors is showing that over half of the public believes this to be so.
The Federal Reserve, as anticipated, raised interest rates this week ¼% to 5.5%, the highest Fed rate in 22 years. They have signaled that they will continue to do so if need be. Fed Chairman Jerome Powell announced at his press conference that “We remain committed to bringing inflation back to our 2% goal…no one should doubt that.” Sounds as if the Feds are not done raising rates to us.
Starts on new single-family houses dropped a bit, down 2 ½% this week and mortgage applications also declined by 1.8% which is the first downward turn in 3 weeks. Refi’s were down 0.4% as well. Personal spending rose by 0.5% last month, however, which is higher than the market expected.
Should the S&P 500 reach 4,600 (which seems achievable) we will see a continuance of the current bull market. And by that we mean, a further opportunity to make significant gains.
When GaneWisdom/Market Edge went live in August 2022, the goal was to provide our subscribers top-tier market analysis and outlook to those with qualified accounts such as: IRAs, ROTH IRAs, 401Ks, and 403Bs. Our desire was to make this service affordable to anyone. Instead of paying thousands of dollars, or a percentage based on investment assets (which is how Guy managed his client’s money as a Registered Investment Advisor) GaneWisdom/Market Edge charges a very affordable $200 per year. Our subscribers now include those with non-qualified accounts as well as financial professionals. Our market analysis consists of market indicators, trends and strategies which allow our followers to avoid large losses usually associated with the traditional ‘Buy and Hold’ method. Our results speak for themselves and each of our Posts since our inauguration are available under the site’s heading ‘Archive’.
It is important to note that the following positions have been in place for weeks. Although we are not advocating transfers currently, it may NOT be in your best interest (should you be a new subscriber) to jump into these sectors at the present time due to price increases already realized. We suggest following our weekly market updates and Mid-Week Alerts for any new suggestions and moving into (or transfer out of) an investment at that time.
| Entry Date | Return (7/28/23) | |
| 1. S&P 500 loaded mutual fund or S&P 500 ETF | 5/19/23 | +13.7% |
| 2. A portfolio consisting of Financial Services. | 6/5/23 | +9.6% |
| 3. A portfolio consisting of Leisure goods and/or services. | 6/12/23 | +6.9% |
| 4. A portfolio consisting of Telecommunications. | 6/12/23 | +1.1% |
| 5. A Small Cap - loaded fund. | 7/12/23 | +3.6% |
Please watch for our Mid-week Market Alerts should there be any.
* As is the case with any investment, use your discretion and judgement before purchasing and/or transferring. Diversification is always prudent; therefore, our suggestion is using a portion of your portfolio and not the total in any one fund or subaccount. A portion should remain in Cash (Money Markets)
The S&P 500 Index (SPX) closed at 4582.23 which is just below the wave 2 high at about SPX 4600, reached back in March of 2022. That would be a very bullish level if broken.
