As August draws to a close, the market is heating up, with significant events on the horizon that could influence trading strategies. I’m Jared Levy, Chief Market Strategist at Peak American Financial Group, and I wanted to share some thoughts on what’s shaping up to be a crucial week for traders and investors, especially with the big Fed meeting at the Jackson Hole Symposium just around the corner.
Here’s What I’m Focused On This Week
- Jackson Hole Symposium: Jackson Hole, Wyoming, is where it’s all happening this week with the annual Fed symposium kicking off on Thursday. I’ll be paying close attention to what the economists and Fed officials have to say about the state of the economy. I’m particularly interested in whether they might drop any hints about future rate decreases or if there are signs of trouble brewing—like weakening in the labor market. This conference often gives us the inside scoop that can really move the markets.
- Earnings Reports: Earnings season isn’t over yet, and I’m watching how companies are performing, especially the smaller ones. While the big names are still posting growth, I’m digging deeper to see what’s really going on beneath the surface. It’s about finding those hidden gems—or potential red flags—that could impact our portfolios.
- Technical Levels: With the S&P 500 bouncing back recently, I’ve got my eye on some key technical levels. The market might be up, but in the short term, those levels will tell the real story. Keeping tabs on these movements is crucial for anyone looking to make smart trades in this volatile environment.
My Trade of the Day: Playing It Safe with Midcaps
With the market all over the place, I’m taking a bit of a safer route by looking at the S&P 400 midcap index, which trades under the ETF symbol IVO. Mid-caps have underperformed this year, only up about 10% compared to the S&P 500’s 17% gain. If you’re feeling uneasy about big tech stocks and want something a little more stable, mid-caps might be a good option. I’m betting on the index as a way to get some solid exposure without the rollercoaster ride of individual stocks.
Wrapping Up
August might be winding down, but the market sure isn’t. With the Jackson Hole Symposium and earnings reports still rolling in, there’s a lot to keep an eye on. I hope these insights give you a good game plan to navigate the ups and downs, balancing caution with opportunity.
CLICK HERE to watch my segment on Business First AM covering this trade.
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