About the Author Chris Ciovacco

Chris Ciovacco is the founder and CEO of Ciovacco Capital Management (CCM), an independent money management firm serving individual investors nationwide. The thoroughly researched and backtested CCM Market Model answers these important questions: (1) How much should we allocate to risk assets?, (2) How much should we allocate to conservative assets?, (3) What are the most attractive risk assets?, and (4) What are the most attractive conservative assets? Chris is an expert in identifying the best ETFs from a wide variety of asset classes, including stocks, bonds, commodities, and precious metals. The CCM Market Model compares over 130 different ETFs to identify the most attractive risk-reward opportunities. Chris graduated summa cum laude from The Georgia Institute of Technology with a co-operative degree in Industrial and Systems Engineering. Prior to founding Ciovacco Capital Management in 1999, Mr. Ciovacco worked as a Financial Advisor for Morgan Stanley in Atlanta for five years earning a strong reputation for his independent research and high integrity. While at Georgia Tech, he gained valuable experience working as a co-op for IBM (1985-1990). During his time with Morgan Stanley, Chris received extensive training which included extended stays in NYC at the World Trade Center. His areas of expertise include technical analysis and market model development. CCM’s popular weekly technical analysis videos on YouTube have been viewed over 700,000 times. Chris’ years of experience and research led to the creation of the thoroughly backtested CCM Market Model, which serves as the foundation for the management of separate accounts for individuals and businesses.

Can Stocks Get Over The Hump This Time?

Chris Ciovacco- December 30, 2014, 6:15 AM EDT

Stocks Have Stalled In This Area Previously

The recent push off the Fed meeting low has brought equities back to a familiar area. The chart of the S&P 500 (NYSEARCA:SPY) below shows the upper blue line has acted as resistance three times in the last six months (see orange arrows).

Reaction To Economic Data

Investors’ reaction to this week’s economic data will most likely determine the market’s short-term fate:

Tech, Industrials Side With Bullish Odds

This week’s stock market video shows numerous areas of potential resistance, along with recent positive developments in the technology (NASDAQ:QQQ) and industrial (NYSEARCA:XLI) sectors.

After you click play, use the button in the lower-right corner of the video player to view in full-screen mode. Hit Esc to exit full-screen mode.

Investment Implications – The Weight Of The Evidence

While the market’s appetite for risk has improved significantly in the wake of the last Fed statement, the economic and stock market bulls still have some work to do. The evidence we have in hand aligns with an equity-friendly investment stance. However, the market’s recent bipolar nature calls for flexibility until the bulls can take out overhead resistance.