The Week in Review: Market Commentary from Cabana’s CEO – January 28, 2019

Below is a snapshot of last week’s market performance and what to watch in the weeks ahead from Chadd Mason, Cabana CEO and co-founder.

Over the past week, we saw equity markets churn right in the middle of a huge area of overhead resistance. This is to be expected given the bounce we saw off the late December lows. It is not out of the ordinary for markets to take some time to digest the gains before trying to break out higher.

We have a plethora of earnings and economic data coming out this week, which will certainly help dictate whether we move forward and resume the bull market, or see the rally end and the likelihood of new lows on the horizon. Caterpillar and Nvidia missed earnings today, sending markets down almost 1.5% at session lows. Losses were cut in half at the close, but the fact remains that these bellwethers are experiencing weaker global demand. Last week I mentioned the fact that markets are forward looking. Weakness reported now is no shock given the selloff during the fourth quarter of last year.

In my view, the next few weeks are critical to the medium term trend of equity markets. This market will ultimately break up or down from the range in which we find ourselves today. We remain moderately bearish.

Download a PDF of this week's market commentary at the following link: Weekly Market Commentary January 28 2019

Disclaimers:
 
This material is prepared by Cabana, LLC(d/b/a “Cabana Asset Management” & “Cabana Retirement Solutions”) and/or its affiliates (together “Cabana”) for informational purposes only and is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed reflect the judgement of the author, are as of the date of its publication and may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and nonproprietary sources deemed by Cabana to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by Cabana, its officers, employees or agents.

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