Second Half Starts Positive BUT on Years Lowest Volume!

July 7, 2018

 

June was a shaky month of stocks up and down and now with the first half of the year over stocks started the second half on a positive note.  The Dow Industrials ended the week above its 200-day moving average.  The S&P 500 gained 1.5% this week.  While the Nasdaq gained 2.3%.

 

However, these gains may be overshadowed by the  fact that they occurred on the lowest trading volume of the year. Normally the Nasdaq market is driven higher by technology stocks. They did have a strong week. But the five biggest percentage gainers in the Nasdaq 100 this week were biotech stocks.

 

Headlines continue to flash warnings about the potential trade wars and a potential recession. Bulls are keeping the faith, arguing that underlying fundamentals—and perhaps the political calendar—point the way higher.

 

Investors looking for protection against a trade war should buy shares of domestic, consumer-facing companies.  Utilities are classic defensive plays.

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