The lateralization of the indices on Wall Street has been evidenced in recent months, with the S & P500 making three waves, between 3,000 and 2,700 points. It is now to be determined whether we are facing a break before new highs, perhaps with a Christmas rally, or if a more pronounced correction as occurred last year, with earning season quality almost certainly one of the topics that will most condition sentiment in the coming weeks. It is almost certain that the best that can be expected is a stabilization of profits rather than growth.
Photo by Annie Spratt.
This is because of the trade war, and despite the constant zigzags about the possibility of full or partial agreement, no one really expects the issue to be resolved in the short term, at least not in order to remove the main uncertainty from the market. A bit in the same vein is the Brexit issue, with an absolute lack of clarity as to whether there will be a request for further extension or whether there is really a chance of reaching an agreement, given that on Thursday Boris Johnson and the Prime Minister Irish have indicated that they “see a way to a deal”, whatever that means.
Therefore, time is still more conducive to short-term business rather than medium-long term positions.
