The paper asset made it through quad witching in style – both stocks and bonds. The risk-on sentiment however didn’t sink commodities or precious metals. Wednesday’s FOMC brought worries over the Fed hitting real economy growth but Powell’s conference calmed down fears through allegedly no recession risks this year, ascribing everything to geopolitics. Very convenient, but the grain of truth is that the Fed wouldn’t indeed jeopardize GDP growth this year – that’s the context of how to read the intention to hike rates 7 times and also shrink balance sheet still this year. Not gonna happen as I stated on Thursday already.
That’s stocks and bonds – both would run into difficulties next week, but it ain’t the end of the rally. After losing some altitude this week and thereafter, the rally would continue but would roll over decidedly to the downside after a couple of weeks. Precious metals and copper would present interesting opportunities while crude oil remains volatile within the context of an uptrend. In any case, cryptos are sending relatively positive signs of risk taking.
Stay tuned for Monday’s extensive analysis, and have a nice rest of the weekend.
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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.
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