S&P 500 closed undecided in the light Monday‘s session, but bond yields continue rising (no, the HYG pause doesn‘t cut it) – the bottom isn‘t yet in, and I fully expect stocks to go down after a brief pause of „just hanging in there“ the way they do now. Yesterday‘s move was defensive – and tech couldn‘t keep intraday gains anyway (value traded even more subdued). The 500-strong index could have taken however minor risk-on turn easily, but didn‘t, which is a watchout – the next selling on a suitable catalyst, would wipe out the recent inconclusive gains. Bitcoin reversal wasn‘t outdone by Ethereum either, which highlights risk appetite return issues.
Real assets took yesterday‘s opportunity to rise, and the black body GDX candle doesn‘t mark a reversal. Most likely and at best, it‘s a sign of a little consolidation (of the intraday flavor) before gold and silver continue rising again. Copper was clear with the swiftness of rejecting the spike below $4.70. Similarly, crude oil will be meandering between $105.50 and $108 before overcoming $110 conclusively. Remember that oil stocks and energy are the best performing sectors in stocks, which isn‘t likely to change. Medium-term trends haven‘t changed, and we‘re likely to see more short profits in stocks and long profits in real assets.
There won’t be a regular analysis featuring charts or Twitter activities today either, but I’m keeping a close eye on the markets and will issue a sound commentary whenever required by the markets on my watch.
Thank you for your patience.
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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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