Stocks in the Spolitght Stocks to watch

The markets continuing the end the week lower with this past week losing over 1100 points on the Dow Jones 30. Of my 11 indices, 8 are in correction territory with only three of them staying above the 10% correction mark (see table above) and they are all narrow markets. This is a sign of probably more lower ground in front of us.

One thing important about this correction is it has mostly to do with wishes, dreams and hopes. Much of it has to do with talks of new tariffs on imported and exported goods. Adding to that we have worry over increasing interest rates, but it's only worry, as the Feds have decided they might be best to hold on a bit. Given time we will discover that other countries need us more than we need them and in the long run the tariffs will be probably the best thing we've done many many years.

What this means is this correction is a phony correction. It is not one that is happened on bad economic news because the economy is cooking on hot. Corporate America is filled growing. Jobs are still growing. Manufacturing is coming online all the time, therefore there is little economic reasons for the markets to fall. It has always been my belief that markets that fall on hearsay can never stay down because rumors are rumors.

The Trump tax breaks are still continuing to change things for the better they will continue to do so going in the 20 19th unless the Liberal Democrats can find some way to screw up a good economy and believe me bill be looking anyway they can. I find it amazing that we have politicians in Washington DC that can't walk into gum at the same time and there called Democrats.

It is because of this it's making it hard to figure out what kind of market were going to happen the first quarter of next year. The new Democratic Congress has already said they will do everything in her power to make it really costs on the Trump administration but the Republicans controlled the Senate, therefore in most cases we will see a do nothing go nowhere Washington DC.

We do have to worry about a possible government shutdown, which could put the nail in the confidence far as the correction, dropping the markets an additional chunk, which in my opinion would be a timely jump on this Christmas wagon because I believe Santa Claus will have a big sleigh ride for us before the end of the year.

As far as what we should do before the end of the year is just about anyone's guess. I say stick with with your favorites if they are working for you and continue to ride the wave. I am expecting one more driver lower before the markets climb higher again.

Of course, for those of us that are looking for something new then value will be the name of the game. For the rest of this year and going into as much as the first quarter. After that it is very hard to read my crystal ball and will have to wait and see.

As always, our best bet may be into the lower-priced arena and you certainly need to use caution there, but there are some excellent opportunities if you just do the homework.

Wishing you the best. JR