After a strong start to 2019 where do we see stocks in April?
US stocks enjoyed their best quarter in almost a decade led by the high flying tech based NASDAQ. While we remain bullish for the months ahead the short-term momentum is implying another pullback may be close at hand:
1 – The ASX200 closed slightly lower last week with only 46% of the index closing up over the 5-days.
2 – On Friday the S&P500 closed up +0.67% but the small cap Russell 2000 only rallied +0.3% - remember at MM we believe the Russell 2000 is often a leading indicator for US stocks.
There are no sell signals in markets at present but we continue to believe the ASX200 is in the cliché phase where we would like to “buy weakness and sell strength” – we are buyers around 6000 and sellers into fresh highs ~6300.
US Russell 2000 index Chart
Continue reading to see what we would buy
