Clifford Bennett Signals - Our Outlook

30 January 2018

snap: it's not always easy, and we just stepped back a little, but then, it is always about hard work after all, to eventually gain the height and the distance we are all looking for.

The market will always run to a level where people begin to hesitate again, as it is of course unchartered waters at record highs consistently. Sometimes, understandably, people become a little cautious. This is all that is happening right now.

The two media highlights really seem to be Barclays CEO saying the market will fall, but they have been bearish for the 300% rally. Then Goldman Sachs said the market is due for a correction in the next few months. Again, of course, eventually, but this is not the best forecasting house around either. Great brand. Great franchise. As forecasters not so great, but everyone listens so it can have an 'on the day' impact.

Then there is all the talk about interest rates going up again. As if this is a surprise? Yes, they are, and it is a bullish event. We forecast in advance of 'tapering' and the first rate hike, that these would be bullish market events. Confirming as they did a fast improving economy that no one else seemed to be able to see. Now, we are in the zone of unheard of prosperity.

A true global boom. Of course rates are going up, and of course so are stocks in such an environment.

This could be a 2-7 day consolidation period for markets, but expect a lift should the Fed hike at this meeting. On the day a slip would be possible, but that would be a keen buying opportunity.

Dow Jones US30
26474
A new high again, and then a good pullback. The character of this suggests some immediate caution, but it is great buying just the same. It could be a 2-5 day consolidation, but the reason, media spin about interest rates is not real. So we are still keen buyers.

NASDAQ USNAS100
6985
Think this is a running to the upside correction period. In other words, this is the correction, and the market will accelerate even more sharply after a few days hesitation. If any more at all.

ASXSP200
6040
If there is a slip to the downside today it is simply silly, and a great buying opportunity.

EUR/USD
1.2385
This still appears to be a cautious buy zone.

GBP/USD
1.4075
Very hard market in the immediate picture with this volatility, but still like it going a lot higher overall.

AUD/USD
0.8095
Still a hard work market. Still bullish.

Gold
1341
Consolidation for a while here. Overall up-trend very much in place.

OIL US WTI cont.
65.50
Behaving very nicely so far. Favour the upside.