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As the market hits the biggest speed bump of the year since finding equilibrium in January, it’s important to note how remarkable the year has been.  While the Transportation index nears, and the Russell moves into correct territory, the bigger picture is more important; both are huge winners in 2019.

• S&P 500 +14.5%
• DJIA +10.7%
• NASDAQ +19.2%
• Russell 2000 +16.4%
• Dow Jones Transportation +15.9%

Composition of 2019 rally in S&P 500:

• 447 winners
• 58 losers
• 343 companies +10% or more
• 183 companies +20% or more

Nowhere to Hide

In many ways, I’m shocked the market isn’t down even more, as those investors that bought the dip are sitting on monster gains.  The S&P 500 and NASDAQ continue to hold above 50-day moving average and buyers emerged intermittently each session this week.

On that note, when the market is freefalling, all sectors get hit; although, some more than others depending on the reason(s) for the decline.

Real Estate continues to act great this week – focus on Communication’s REITs.

S&P 500 Index		-0.30%
Communication Services (XLC)		-0.31%
Consumer Discretionary (XLY)		-0.41%
Consumer Staples (XLP)		-0.21%
Energy (XLE)	0.00%
Financials (XLF)		-0.22%
Health Care (XLV)		-0.21%
Industrials (XLI)		-0.14%
Materials (XLB)		-0.78%
Real Estate (XLRE)	+0.34%
Technology (XLK)		-0.68%
Utilities (XLU)		-0.12%

US Tariffs on China

Yesterday

• 25% on $50 billion
• 10% on $200 billion

Today

• 25% on $250 billion

Next Step

• 25% on additional $325 billion

Trump Tweets

Donald J. Trump

‏Talks with China continue in a very congenial manner - there is absolutely no need to rush - as Tariffs are NOW being paid to the United States by China of 25% on 250 Billion Dollars worth of goods & products. These massive payments go directly to the Treasury of the U.S.......

Donald J. Trump

‏Tariffs will bring in FAR MORE wealth to our country than even a phenomenal deal of the traditional kind. Also, much easier & quicker to do. Our Farmers will do better, faster, and starving nations can now be helped. Waivers on some products will be granted, or go to new source!

Donald J. Trump

‏....If we bought 15 Billion Dollars of Agriculture from our Farmers, far more than China buys now, we would have more than 85 Billion Dollars left over for new Infrastructure, Healthcare, or anything else. China would greatly slow down, and we would automatically speed up!

Both sides will meet again this morning, and it’s clear, the market is holding out hope and not trying to bully the White House with another massive round of selling out the gate.  That works with the Federal Reserve, and previous administrations.  But despite his love of market gains, President Trump won’t let the stock market dictate the outcome of these talks.

Portfolio Approach

We are holding cash and waiting. While we are anxious to buy, we are okay with waiting a little longer as stocks get cheaper. If you are not on our Hotline service, don't miss the opportunities being presented.  Click here to get started today.

Communication Services	Consumer Discretionary	Consumer Staples
1	4	1
Energy	Financials	Healthcare
1	1	1
Industrial	Materials	Real Estate
2	3	0
Technology	Utilities	Cash
2	0	4

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