Seeing as this is my first Friday rant of the New Year, it’s important to remind you that historically the first five days of market action are indicative of the direction we’ll take for the next 12 months. And already things have been somewhat positive, with the Dow up about 330 points at the close on Thursday and the Nasdaq also getting a nice boost.

Yet shortly after the close, a U.S. drone strike in Baghdad killed Iranian General Qasem Soleimani, who many claim to be the No. 1 bad guy and taker of U.S. lives in recent times. This is victory for us in the short-term, but there will surely be some sort of major retaliation in the coming days or weeks.

 Stocks were down over 300 points at worst early on Friday morning, largely erasing yesterday’s strong gains. More important, the markets are backing off of my key resistance point just over 28,000 on the Dow. Breaking above yesterday’s high of 28,873 will be bullish near-term, but breaking below 26,300 will be more bearish.

We’ll have to see how things continue to progress. And remember, one thing that’s a better indicator than the first five days? The first full month.

Of course, 2020 is expected to be an anomaly, as I’ve been writing about for quite some time, so it’ll be tough to apply the conventional wisdom of market trends to what happens over the next few weeks.

Remember, we’re still deep into this megaphone pattern, and a downturn could also be coming that would scare people before the 2020 peak. That, along with the tumultuous political landscape at the moment – to say nothing of what happened in Baghdad overnight – will only further muddy the waters. And that’s to say nothing of the pressures Trump will put on the Fed in order to keep the economy humming as he moves toward his re-election.

To put it lightly, we’re in for quite a wild one. I have more in this week’s Friday Rant.

How to Prep Your Retirement Savings for 2020

“This is no longer a question of ‘if’ but simply a question of ‘when.’” Harry Dent opens up about his latest forecast for 2020 and how a number of factors could lead… Read More>>
Harry Dent
Harry S. Dent Jr. studied economics in college in the ’70s, but found it vague and inconclusive. He became so disillusioned by the state of his chosen profession that he turned his back on it. Instead, he threw himself into the burgeoning new science of finance where identifying and studying demographic, technological, consumer and many, many other trends empowered him to forecast economic changes. Since then, he’s spoken to executives, financial advisors and investors around the world. He’s appeared on “Good Morning America,” PBS, CNBC and CNN/Fox News. He’s been featured in Barron’s, Investor’s Business Daily, Entrepreneur, Fortune, Success, U.S. News and World Report, Business Week, The Wall Street Journal, American Demographics and Omni. He is a regular guest on Fox Business’s “America’s Nightly Scorecard.” In his latest book, Zero Hour: Turn the Greatest Political and Financial Upheaval in Modern History to Your Advantage, Harry Dent reveals why the greatest social, economic, and political upheaval since the American Revolution is on our doorstep. Discover how its combined effects could cause stocks to crash as much as 80% beginning just weeks from now…crippling your wealth now and for the rest of your life. Harry arms you with the tools you need to financially prepare and survive as the world we know is turned upside down! Today, he uses the research he developed from years of hands-on business experience to offer readers a positive, easy-to-understand view of the economic future by heading up Dent Research, in his flagship newsletter, Boom & Bust.