JFarrish Wk of Nov 28th

Week of November 28th

The S&P 500 index continued to set new highs during the holiday week. As we approach the final month of the year investors like what they perceive about the economy, the Fed and the changes coming in Washington. Emotions remain the primary driver for the broad markets with investors and traders alike pushing sectors and stocks up or down based on speculation. My view is to take what the market gives, keep your stops in place, and manage the risk of the current environment.

The S&P 500 index ended the week at 2213... a new high and all things positive in the headlines. 

The leaders were telecom (IYZ), energy (XLE) and basic materials (XLB). Nine of the ten sectors closed in positive territory for the week and helped push the overall index to new highs. The loser for the week was healthcare (XLV) as the sector tested lower and bounced off the test to end the week. Watching how it unfolds this week. 

Biotech has been the source of pain as the drug manufacturers struggle with the outlook and changes from Washington on healthcare. Treasury bonds fell as the yield on the ten-year bond pushed to 2.37% as investors look for the Fed to act on interest rates at the next FOMC meeting. 

Technically the market has resumed the uptrend from a longer term view. The two-week trend higher remains in place with no real negatives being voiced of late. Focused on risk management as this move continues to unfold.