The logic is sublime. Since Facebook, Amazon, Netflix and Google look good, the entire market is poised to ‘melt up’, according to HSBC.
They also like industrials.
“The S&P 500 industrials sector has given a bull signal with momentum turning higher on the back of a positive cyclical trend indicator,” the analysts write, meaning that the slope of the 200-day moving average is showing positive momentum that could preface a further move higher.
Meanwhile, the heavyweight FANG stocks have been showing more strength following a tough start to 2016.
“This is further evidence that a melt up in U.S. stocks is becoming an increasing probability,” the HSBC analysts write, noting that the four stocks have broken through a so-called resistance line.
Stocks are melting higher today, incidentally, thanks to dovish comments by Fed’s Lockhart.
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Markets on auto-pilot until election is over…….No Volatility…. No rate rise…..No sudden movements. Panic in the Markets can only help Trump.
LOL at a Fed official speaking out every week. They should quit jawboning about this fake rate hike. Everyone knows that they won’t do anything.