Has The Stock Market Finally Found Steady Ground?

When I say the word economics, I watch most of you get that far off stare.

I love economics but I realize to most of the world, it's like watching paint dry on a wall.

But the science of economics really excites me. So here's what is happening in the economic world (and you won't believe how it will affect your trading)!

If you are a student of the stock market and you want to make money trading, I encourage you to stop and think about the relationship between the economy and your trading success.

The more you understand economic impacts, the better your trading is going to be.

Something as simple as the government announcement of the PPI can derail your trades for days, and sometimes even longer.

And if you don't know what the PPI is, you should think about becoming an Investing Buddy. This is the kind of information we share each week on a weekly webinars.

So let's talk about what I see right now.

At the end of January and we are starting to see signs of spring where I live.

We are also seen signs of spring in the stock market.

Now our government can still screw it up for us, and I'll explain how in a minute.

Since the beginning of the year, I have felt the underlying fear of traders ebbing away.

I'm not convinced that it isn't just because we've become numb to the bad news and that things things are truly improving.

Nevertheless, I'm a firm believer in trading what you see unfolding and not what you think it should be.

Here's what I see unfolding.

The highs are getting higher.

And the lows are getting higher.

The accumulation of the market is improving with money coming back in and we're about to see a golden cross pattern.

This is where the 50 day moving average crosses up above the 200 day moving average.

Notice part of 2021 and all of 2022, the 200 day moving average was on top.

In an ideal marketplace, the 50 day the faster moving average should be on top, then the 100 day moving average, and finally the 200 day moving average on the bottom.

All good news.

Now how can the government screw this up for us?

I think it's by continuing to raise interest rate hikes.

My hope is in this month's announcement that consensus is the prior measures have curbed inflation and the big hikes are no longer needed.

I'm hoping for no more than 25 basis points.

There are some other concerns I have and I'm going to say this is from my background and my thinking so you can disregard it if you want.

Last year's money supply was the lowest since the Great Depression of the 1930s.

Just to let you know where I'm coming from, I was raised in a Jewish-Christian home with values and education in the Jewish history.

There have always been men who did prophecies about our future.

And one of those prophecies was by John who was a disciple of Jesus.

He foretold a time when the currency of the world you would have to have a mark on your forehead or on your hand to exchange in barter goods and services.

Now I've watched with interest as the world move towards a digital currency.

Think of our credit cards where you just go and tap the reader, well the next step is implant into your body.

It'll replace your Apple Pay or the chip on your credit card.

You may not agree with me but it isn't it fun to throw around these ideas, especially around the stock market? 

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