Weekly Market Outlook October 21, 2018

“Markets love volatility. ” – Christine Lagarde

Pfäffikon SZ, Switzerland – The market settled down a bit last week. Nevertheless, the autumn storm does not seem to be over at the stock markets. The S&P 500 still struggles with the 200-DMA, and that makes the technical gourmets among us nervous.

The good news is that the company figures are coming and they certainly will not disappoint, so is the consensus. Therefore, we are still of the opinion that the recent decline can be labeled as “noise” driven by sentiment and chartists. On a 5.2% decrease of the S&P 500 in two days you can impossible anticipate, on the follow-up all the more.

The new trading week is full of quarterly figures. Furthermore, Italy will be able to control investors’ minds because of Italian budgetary problems in connection with the agreements made with the European Union.

This material is communicated on October 21, 2018 by 1324 | by Thirteen Asset Management AG, Rietbrunnen 20, 8808 Pfäffikon SZ, Switzerland. This material is for information purposes only and is not intended to be a solicitation or invitation to invest. Any organizations or products described in this material are mentioned for reference purposes only. This material is intended only for investment professionals and professional clients and must not be relied upon by any other person. It is proprietary information of 1324 | by Thirteen Asset Management AG and may not be reproduced or otherwise disseminated in whole or in part without prior consent from 1324 | by Thirteen Asset Management AG. Alternative investments can involve significant risks and the value of an investment may go down as well as up. There is no guarantee of trading performance and past or projected performance is not a reliable indicator of future performance. We recommend to consult your bank, investment and/of tax adviser.