Weekly Economic and Stock Market Commentary – July 6, 2021
As for the stock market specifically:
I, for one, am not bored with starting the week at record levels. However, it appears that we are going to see some selling today as I write this Monday morning.
The Nasdaq Composite seems to be coming back to life, while the international stocks resumed their place as the laggard.
The first half of the year (approximately) finished with gains that are in the normal range for a year.
THIS IS NOT A PREDICTION, but there is a sufficient pile of data to show that a strong second half is a reasonable expectation.
Despite the gains for the week on the index level, the bullish percent indicators all fell. At this point in time, no changes are imminent, and the recommendation of WEALTH ACCUMULATION for OTC stocks and WEALTH PRESERVATION for NYSE companies remains in effect.
Remember, Xs mean OFFENSE or wealth accumulation, while Os mean DEFENSE, or wealth preservation.
Below is where our indicators stand as of July 2, 2021 (Courtesy Dorsey, Wright, and Associates).
On a general note:
The Department of Labor announced the US economy was able to add 850,000 jobs in June. That was the highest monthly increase since last August. The unemployment rate rose to 5.9%. Hourly wages rose 3.6%. Finally, the economy employs 6.8 million fewer people than in February 2020.
Since it is a holiday week, I am going to leave here. As always, feel free to call me with questions about this Weekly Economic and Stock Market Commentary – July 6, 2021.