Global Growth Returns, 6 Monster Predictions For The Week Of Feb. 11

The Week of February 11

The coming week will be an extremely busy one with data coming at us from around the globe. Not to mention there will be plenty of chatter about US-China trade talk. 

Monday will deliver US GDP, followed with a speech by Fed Chair Powell on Tuesday. Wednesday brings the consumer price index, followed by the PPI on Thursday.

As if that wasn’t enough for you, on Wednesday, you also get EU industrial production, with GDP on Thursday and you better pay attention to that number out of Germany. The pace of economic growth in Germany has slowed materially since the beginning of 2018. But we already knew that.

german gdp

China will have total vehicle sales on Tuesday and inflation data on Thursday.

So if you are in the bear camp, there is plenty of events out there this week to get your juices flowing.

This is Why Stocks Are Heading Higher

So where do stock go? It is an excellent question. It seems like I still get so much attention from the bears when I post a bullish article. It is as if you aren’t supposed to be optimistic. I was listening to a “show” on Friday late afternoon where the argument was about how we still need to retest the lows from December. My question is why? Why do we need to retest the lows?

I think the S&P 500 is heading to 2,800, and this week will be a positive one for equity prices. 2,800 will be the principal level to watch, and at this point, I’m not ready to say what happens, although my instincts tell me we continue higher after 2,800, with a move on to 3,100. Oh I can hear the screams and the name calling.

I came across these interesting charts of the S&P 500 when I was doing my daily analysis. When I glanced at it became clear what the problem was in December –Liquidity. Volume levels dried up the further the market fell.

volume, S&P 500

So do the markets “have” to retest the lows? No. The market doesn’t “have” to do anything. The market does what it wants. Could the S&P 500 fall back to say 2,630? Yes. Would it be the end of the world? No.

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Disclosure: Michael Kramer and the clients of Mott Capital own Netflix

Michael Kramer owns SMH March 15 $101 Calls

Disclaimer: This article is my opinion and expresses my views. ...

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