Ron’s Market Minute – Some Thoughts on Market Resistance
The current state of the financial markets looks to me to be one of cautious optimism, with several trends emerging that are providing support for stocks and other assets. Two of the most notable trends are the downward trend of the 10-year Treasury yields and the strength of the US dollar, which are both giving stocks a tailwind.
As a result of these trends, gold and gold-mining stocks are at new all-time highs, leading to a surge of excitement among gold bugs who are eagerly buying the precious metal. However, the high price of gold means that it may not be the best investment opportunity for those who are looking for a bargain.
Meanwhile, many areas of the S&P index are approaching or at the highs from last August, which could potentially act as resistance. This is particularly true for technology and communications stocks, which are both approaching prior highs. When sectors are at prior resistance, it tends to lead to a choppy market.
Within these sectors, internet stocks and semiconductor stocks are still the outperformers. This is because these industries have been at the forefront of technological innovation and have benefited greatly from the shift toward digitalization and remote work.
Overall, the current state of the markets is one of cautious optimism, with several trends providing support for stocks and other assets. While we are continuing to find strength in smaller areas, we suggest that investors should remain vigilant and do their due diligence before making any investment decisions, as these types of markets can be unpredictable and subject to sudden shifts.
Ronald P. Denk, CFP®
Denk Strategic Wealth Partners
10000 N. 31st Avenue, Suite D406A
Phoenix, AZ 85051
Phone (602) 252-8700
Fax (602) 252-8701
Toll-Free (877) The-Denk
*The indices are representative of domestic markets and include the average performance of groups of widely held common stocks. Individuals cannot invest directly in any index and unlike investments, indices do not incur management fees, charges, or expenses, therefore specific index returns will be higher. Past performance is not indicative of future results.
This weekly article reflects news, commentary, opinions, viewpoints, analyses, and other information developed by Denk Strategic Wealth Partners for use with advisory clients only and/or select but unaffiliated third parties. DSWP provides Market Information for illustrative and informational purposes only. If you wish to receive this weekly commentary by email, please contact us at 602-252-8700 or by e-mail at email@example.com. If you are receiving this commentary via email and would prefer not to please let us know either by email or phone. We will comply within 30 days.
Ronald Denk is an Advisory Representative offering services through Denk Strategic Wealth Partners, A Registered Investment Advisor. He is also a Registered Representative, offering investments through Lincoln Financial Securities Corporation, Member FINRA/SIPC.
Denk Strategic Wealth Partners is not affiliated with Lincoln Financial Securities Corporation. Information in this commentary is the sole opinion of Denk Strategic Wealth Partners. Past performance is no guarantee of future returns. All market related investments involve various types of risk, which include but are not restricted to, credit risk, interest rate risk, volatility, going concern risk, and market risk.
The Update provides information of a general nature regarding legislative or other developments. None of the information contained herein is intended as legal advice or opinions relative to specific matters, facts, situations, or issues. Additional facts, information or future developments may affect the subjects addressed in this document. You should consult with an attorney, accountant or DSWP planner about your particular circumstances before acting on any of this information because it may not be applicable to your situation. Please do not send any timely trading or transaction instructions through this email as they will not be executed. Should you require immediate assistance to place a trade, please call the applicable firm listed on your account statement.
Lincoln Financial Securities and Denk Strategic Wealth Partners and their representatives do not offer tax or legal advice. Individuals should consult their tax or legal professionals regarding their specific circumstances.*The indices are representative of domestic markets and include the average performance of groups of widely held common stocks. Individuals cannot invest directly in any index and unlike investments, indices do not incur management fees, charges, or expenses, therefore specific index returns will be higher.
Please see Denk Strategic Wealth Partners’ Client Relationship Summary here https://denkinvest.com/?page_id=7099 for succinct information about the relationships and services DSWP offers to retail investors, related fees and costs, specified conflicts of interest, standards of conduct, and disciplinary history, among other matters.
For information about the relationships and services Lincoln Financial Services offers to retail investors and clients, related fees and costs, specified conflicts of interest, standards of conduct, disciplinary history, etc., please CLICK HERE to view our Form CRS and Reg BI Disclosure Document.
Past performance is not a guarantee of future returns – LFS-5390884-123022