Greetings

The bears took control this week as all of major market indices fell and all 11 SP Sector Groups were negative.

On Friday concerns about advertising on Social Media took down FB which brought the rest of FANG down with it.  China is threatening to not follow Phase I while a record number of COVID positive patients are showing up in those states that have opened up.  In fact, in TX and FL there has been closing of some opened business ( FL Bars), delays in implementation, and continued reductions in hospital capacity.  Cruise ships have also pushed back their restart.

I doubt the economy nor the market can withstand a second shutting of our economy.  I expect to see further additional stimulus and QE from the Fed to prevent and economic and market collapse.  This is the setting of civil unrest and a National election upcoming that could put the LEFT in charge of the White House and the Hill.  The Republicans in the Senate and White House are certainly incentivized to provide additional stimulus and I am Sure President Trump knows his history that no sitting President has been reelected in the setting of a recession for nearly 100 years.

To me, there are many ingredients for further market selloffs, yet as I demonstrate, we are also in a very strong period of the year from a seasonality standpoint.

I AM DOING A LIVE WEBINAR, on Friday, July 3 at 10 am.  Please join as I look at markets, demonstrate how I use the tools, and answer your questions.  You must register to attend.  As always I will try and record and will post as long as I am happy with the results.  Register at: http://tinyurl.com/hgsidocjuly32020

Jeffrey

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Dr. Jeffrey Scott is a private investor and educational affiliate for HGSI Investment Software LLC