The US market made a move to all-time highs in the last week of the decade, many indices followed suit in the US. There were no real catalysts and major economic releases out of the US/China or the rest of the world to disturb the rally or propel it for that matter. Volatility was relatively subdued on the rally. This caused the S&P 500 to press into the 30% gain territory for the week, it’s on track to match the 2013 29.6% return which is the best of the decade. Based on historical returns, the year following a 25% return year typically yielded on average a gain of 7.5%, which means that good returns don’t have to be followed by negative years or necessarily bad return years. The market is, however, getting overbought and investor expectations need to be lowered for the next year.

Here is a look at last week’s stock market on a daily basis (red vertical lines split days).

Stock Market and Sector Overview

Here is a break down of the weekly performance in various stock market sectors (top chart):

  • Energy  +1.26%
  • Technology +1.09%
  • Financials  +0.06%
  • Retail  +1.34%
  • Utilities  +0.09%

Overview of key markets last week (bottom chart):

  • Crude Oil +1.02%
  • S&P500  +0.84%
  • Silver  +4.27%
  • Gold  +2.22%
  • US dollar -0.48%

Weekly Economic Calendar

We’re getting ready for another slow week in the markets with little high impact events flooding the world.
Monday, Chicago PMI out of the US and Manufacturing PMI out of China.
Tuesday, CB consumer confidence out of the US.
Wednesday, Caixin Manufacturing PMI out of China.
Thursday, no high impact news.
Friday, ISM manufacturing PMI and FMOC meeting minutes out of the US.

 

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The information contained in this post is solely for educational purposes and does not constitute investment advice. The risk of trading in securities markets can be substantial. You should carefully consider if engaging in such activity is suitable to your own financial situation. TRADEPRO Academy is not responsible for any liabilities arising as a result of your market involvement or individual trade activities.