Market Commentary for June 2018

"Nothing has changed... "

By Alan Hull

This commentary is in part or entirely created using extracts and comments from my weekly Blue Chip Report. For more information about the Blue Chip Report, including subscription details and a recent sample report, go to Blue Chip Report

Last month's commentary was pretty extensive....I talked about volatility clusters and compared them to volcanic ash, showed you some upside down charts and I even bragged a bit about how well I did at the end of last year. By comparison, this commentary is pretty boring because nothing has changed since last month. Here were my conclusions and recommendations at the start of May....

I did very well in the latter half of 2017, with all of my strategies generating profits. I don't want to give any of those profits back to the market and I want to be ready in case markets fall. On the other hand if this turns out to be an inflexion point and markets start trending up again, then it will be back to business as usual. But that's not how things are shaping up right now and successful traders & investors are prepared for all contingencies.

And it's ditto for the start of June. All the major world market indexes are sideways, except for the SP500 and the Shanghai Composite which are both still trending down. By this I mean they are both trending down on a weekly basis, according to Dow Theory. Can you see the lower highs and the lower lows in both the following charts?

The Shanghai is in worse shape than the SP500, but both are trending down. So nothing has changed from a month ago, other than this month's sales pitch...as you will already know about my short selling seminars in June/July. So this month I'm promoting my forthcoming Advanced course which starts in late August. And yes, this is the course where you get to trade.

In a recent advertisement I gave the trading performance figures for the 2017 class and this generated some questions. Principally, were these results for the 3 month duration of the course (or were they annualized) and did I have results from previous years? The results were for the 3 month duration of the course (they are not annualized) and below are the last 3 years results....

2017
Highest return = 24.0%
Lowest return = 6.0%
Average return = 14.6%

2016
Highest return = 13.4%
Lowest return = -11.4%
Average return = -2.3%

2015
Highest return = 33.1%
Lowest return = 0.6%
Average return = 8.1%

These results are dependent on the prevailing market conditions but this course is definitely where the rubber hits the road and you will be share trading...or very possibly short selling. And you don't have to be that advanced to participate. Anyway you will find everything you want to know about this at course at https://alanhull.com/advanced-course including an enrolment form.

Whilst May didn't see global Stockmarkets slide into the abyss, the volatility isn't going away. So expect more confusing and polarised opinions from financial market commentators going forward and unfortunately I can't help you decide who to listen to...because I'm one of them.