S&P 500 Nears Record High – Here’s the Plan

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S&P 500 Nears Record High – Here’s the Plan

US stocks are off to a great start to October and the fourth quarter.

The S&P 500 is up almost 6% from the low on October 3, logging three winning weeks in a row. The leading index is now up 20% in 2019 and ready to breakout into a new all-time high.

Take a look at the action below.

Why are US Stocks trading so Strong?

The recent string of gains is being driven by a few key factors.

US, China Trade Deal: Wall Street is becoming desensitized to the US, China trade battle. Beyond that, the two leading economic powers have signaled that they are making progress on talks and comprehensive deal could be close at hand.

Q4 Earnings Season has Been Pretty Solid: Q3 earnings season has been a little better than expected and that is giving stocks a nice little boost. Here are some stats from CNBC.

More than 38% of S&P 500 companies posted quarter earnings for the third quarter thus far, according to FactSet. Of those companies, 78% have beaten analyst expectations.

Seasonal Effect: US stocks are moving into their strongest time of the year. The six months between November and April are seasonally the strongest part of the year for US stocks.

What Should We Expect Looking Forward?

Looking forward I am expecting a solid quarter for US stocks. I am expecting to see a new all-time high in the next few days, and from there I am expecting to see a 5% push higher. That would make 2019 another great year for stocks, putting the S&P 500 up about 25%.

I’ll be back next week with another update. In the meantime – if anyone has questions please feel free to contact me: mike@vodickagroup.com

Disclaimer: This report is for entertainment purposes only. Every investor should consult with an investment advisor before making investment decisions. The Vodicka Group, Inc. is not a broker/dealer. We do not receive compensation for mentioning stocks. At various times, the clients, publishers and employees of Vodicka Group, Inc., may buy or sell the securities discussed for purposes of investment or trading.

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