Some Buying Interest
S&P 500 had trouble declining further, and unlike bonds, may be headed for a reprieve on par with Tuesday‘s performance. That‘s the outlook for today and tomorrow unless bonds continue decisively to the downside, dragging stocks with it. These have so far been consolidating across the board as the bears need some time to regroup. The focus still remains on inflation, and not on slowing growth, therefore the S&P 500 will remain under pressure the more the Fed keep stealing the spotlight. And their recent comments implying soft landing attempts and focus on the real economy don‘t cut it yet – inflation expectations keep rising, and the supply chain disruptions certainly won‘t end any time soon (actually, would get worse come summer if you look at what‘s going on farther in the East). The Fed hasn‘t yet made any major turn (weak quarterly GDP print won‘t rock the boat), let alone pivoted at they could call it.
For now, we are still in a broadly recognized deleveraging environment, with increasing geopolitical tensions, and the relentless rise of the dollar (fueled by yields) and realigning commodity trade relations and currencies. The silence before another crude oil upleg, is deafening – just look across the board at natgas. Gold and silver certainly appear the most undervalued asset classes out there, but the pressure is on until the Fed and yields turn. The final downleg in stocks gyrating in a wide trading range, is still ahead of us. With the paper assets decline still ahead, the Fed‘s attention will be slowly captured, especially when Treasuries give them some breathing room…
There won’t be a regular analysis featuring charts or Twitter activities today, 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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