This week we have a stock market forecast for the week of 1/2/2022 from our friend Bo Yoder of the Market Forecasting Academy. Be sure to leave a comment and let us know what you think!
The S&P 500 (SPY)
The Fed again interjected itself into the markets, and the downside follow through I was forecasting was squelched by the end of trading on Monday, then we flew back up to whipsaw out all the stops set above the highs! Since then, we sit and spin.
I still don't believe the breakout is sustainable and that we will turn lower. However, it may take a week or two to burn off the speed of the rally back up to the highs.
I'm not going to change any of my open trades, and this whipsaw reinforces my choice to take short exposure in the last forecast in individual stocks vs. the market index!
SPDR Gold Shares (GLD)
Gold continues to grind higher and ignores the volatility in the stock market. $175 will be the next significant test, and the odds are stacked in favor of a breakout and continued uptrend
iShares Silver Trust (SLV)
Silver mirrored gold and has been trending slowly and powerfully to the upside. I believe my entry was the best one, so now I sit tight with confidence as I wait for how this market chooses to deal with the $24 per share level.
Goldman Sachs (GS)
There was relative weakness here as the market indexes ping-ponged back to their highs, GS wasn't able to rally up to even take out the highs near $400. This week, we have turned back down, but it's critical that this stock take out the lows of two weeks ago. If it cannot pass this simple test, I will likely take profits.
Ulta Beauty, Inc. (ULTA)
Bummer of a week from ULTA, as I was hoping this trade would be a classic example of how sometimes a trade can look bleak, then turn out happily after all. This may still happen, of course, but the odds are unfortunately high for a stop out above the red zone next week.
Voya Financial, Inc. (VOYA)
VOYA squeezed along with the rest of the market, then turned into a lower high. This reversal MUST produce a significant downside in next week's trading, or I risk being stuck in a channeling stock for months.
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About Bo Yoder:
Beginning his full-time trading career in 1997, Bo is a professional trader, partner at Market Forecasting Academy, developer of The Myalolipsis Technique, two-time author, and consultant to the financial industry on matters of market analysis and edge optimization.
Bo has been a featured speaker internationally for decades and has developed a reputation for trading live in front of an audience as a real-time example of what it is like to trade for a living.
In addition to his two books for McGraw-Hill, Mastering Futures Trading and Optimize Your Trading Edge (translated into German and Japanese), Bo has written articles published in top publications such as TheStreet.com, Technical Analysis of Stocks & Commodities, Trader's, Active Trader Magazine and Forbes to name a few.
Bo currently spends his time with his wife and son in the great state of Maine, where he trades, researches behavioral economics & neuropsychology, and is an enthusiastic sailboat racer.
He has an MBA from The Boston University School of Management.
Disclosure: This article is the opinion of the contributor themselves. The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. This contributor is not receiving compensation for their opinion.