Graycell Advisors

Hello

Market updates are typically not planned during the month. But the aggressive stock market volatility is presenting a unique situation not seen in recent times. 

The past week raised the possibility of a growing trade war with China. If left unchecked, such trade-related friction has the potential to create economic uncertainty and possibly stymie economic growth, a risk that the market has begun to reflect rapidly.

As we begin a new week, the major indexes are poised around an area of key technical support, with the market uptrend experiencing its most significant stress test since early 2016. A speech by the Chinese president at an economic forum in China on Tuesday, 10th, assumes more weight in determining the near-term direction. Of course, President Trump's tweets on trade tariffs carry just as much weight in moving markets. A further escalation in tariff rhetoric can potentially deteriorate the outlook to warrant a portfolio readjustment. 

At the macro level, there is a lot going for the stock market including earnings and economic growth, and a benign interest rate policy. The recent pullback, to a meaningful extent, is tariff related. Any sign of detente can spark a sustainable turnaround, particularly as an anticipated robust earnings season picks up the pace in a week's time. 

As relevant information presents itself, we will provide an update if any model portfolio readjustment is required. 

For any questions, kindly contact us at support@GraycellAdvisors.com or simply use the website Contact form.

Sincerely,
Graycell Advisors

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Graycell Advisors, and its affiliates, officers, employees, families, and all other related parties, collectively referred to as ‘Graycell’ and/or ‘we,’ is a publisher of financial information, such as the Prudent Biotech and Smallcap newsletters. Historical performance figures provided are hypothetical and unaudited, and based on our proprietary analysis and system performance, back-tested over an extended period of time. The performance results obtained are intended for illustrative purposes only. Past performance is not indicative of future results, which may vary. All stock and related investments have a degree of risk, which can result in a significant or total loss. In addition, smallcap segment is characterized by much higher risk and volatility than the general stock market. The Information contained herein does not constitute a personal recommendation or takes into account the particular investment objectives, financial situations, or needs of individual investors. If you decide to invest in any of the stocks of the companies mentioned in the newsletters, samples, alerts, etc., sent to you or available on our websites, you can and may lose some or all of your investment. You alone are responsible for your own investment decisions. We are not liable nor do we assume any responsibility for losses incurred as a result of any information provided or not provided or not made available in a timely manner, herein or on our website or using any other medium.  We also cannot guarantee the accuracy and completeness of any information furnished by us. Graycell is not a registered investment advisor and nothing contained in any materials should be construed as a recommendation to buy or sell securities. We may or may not already have existing positions in the stocks mentioned in our reports. Our models are proprietary and/or licensed and can be changed or revised based on our discretion at any time without any notification. Subscribers and investors should always conduct their own due diligence with any potential investment and consider obtaining professional advice before making an investment decision. 

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