Morning Minutes 11/20/2018

Technology and Retailers Struggle as Black Friday Approaches

November 20, 2018
8:45 am EDT

At SIA Wealth Management everything we do is based on Relative Strength Analysis. We evaluate the Relative Strength between asset classes giving us insight into money flows on a large scale, and from this select top ranked investments.

Market Commentary By:
Colin Cieszynski, CFA, CMT
Chief Market Strategist
+1 (647) 282-4428

The last full day of trading before the US Thanksgiving holiday weekend finds US indices still under pressure. It seems that bulls don’t want to take a stand and bargain hunters have backed off having been burned by false rebounds earlier in the month. Dow futures are down another 300 points or 1.2% compounding yesterday’s 1.5% drop in the Dow and 3.0% plunge in the NASDAQ.

Technology investors are still finding that high momentum cuts both ways as previously high flyers in the sector continue to tumble. This may not just be related to fear and volatility, we’re also into tax loss selling season which could keep the pressure on for a few more weeks.

The selloff in reaction to retailer earnings has continued into this week, but also appears to be morphing into something more. Two of the biggest US shopping days of the year, Black Friday and Cyber Monday, are less than a week away and the retailer retreat suggests wariness and declining expectations about sales results. Anecdotal reports from the malls and early online results could have a significant influence on trading in the group over the next few days.

Disclaimer: SIA Wealth Management Inc. (SIAWM) specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investor’s investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIAWM nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.