The paper asset bulls missed another opportunity on Friday, and it’s not about risk aversion before the weekend – cryptos have barely moved since. Credit markets risk off posture has decidedly continued, and coupled with the inflation data and slowing real economy, that’s a a warning sign for stocks. Even though their internals aren’t breaking down head over heels, S&P 500 is in a precarious position, and should / once a key support that I’ll discuss in Monday’s analysis breaks, things would (rather than could) go ugly fast.
That’s in stocks – precious metals and commodities continue consolidating, and the least volatile appreciation opportunity presents the red metal. And it‘s not only about copper – crude oil market is going through supply realignment, and demand is not yet being destroyed on a massive scale. The overnight Erbil events are unlikely to sink black gold’s price either.
Summing up, inflation isn’t decelerating (more on that on Monday), the Fed has less room to move now, and real economy growth is slowing down sharply. Earnings would feel the hot commodity and labor market prices, which doesn’t bode well for a smooth 2022 ride in stocks. Precious metals and commodities, that’s an entirely different story.
Stay tuned for Monday’s extensive analysis, and have a nice rest of the weekend.
Thank you for having read today‘s free article, which is available in full here at my homesite. There, you can subscribe to the free Monica‘s Insider Club, which features real-time trade calls and intraday updates for all the five publications: Stock Trading Signals, Gold Trading Signals, Oil Trading Signals, Copper Trading Signals and Bitcoin Trading Signals.
* * * * *
All essays, research and information represent analyses and opinions of Monica Kingsley that are based on available and latest data. Despite careful research and best efforts, it may prove wrong and be subject to change with or without notice. Monica Kingsley does not guarantee the accuracy or thoroughness of the data or information reported. Her content serves educational purposes and should not be relied upon as advice or construed as providing recommendations of any kind. Futures, stocks and options are financial instruments not suitable for every investor. Please be advised that you invest at your own risk. Monica Kingsley is not a Registered Securities Advisor. By reading her writings, you agree that she will not be held responsible or liable for any decisions you make. Investing, trading and speculating in financial markets may involve high risk of loss. Monica Kingsley may have a short or long position in any securities, including those mentioned in her writings, and may make additional purchases and/or sales of those securities without notice.
Sign Up for Monica’s Insider Club!
It’s free and you’ll get my message right when a new post goes up.