S&P 500 refused the plunge right after open, and broad-based upswing developed. Looked like a genuine upswing that could last for a while, but today‘s premarket weakness raises the question whether that wasn‘t another short squeeze only. The jury is still out, but I‘m leaning towards the short longevity of yesterday‘s move. Inflation is biting, PPIs abroad raging, and the slowdown in growth not raising enough alarm bells yet. The tightening path is on, Treasury yields aren‘t hesitating much, USD keeps rising – and markets are still pricing in very significant rate hikes, more so than is being talked by the Fed at the moment. The headwinds for stocks, and tech in particular, are far from over.
Precious metals are ready to turn up, miners say – a fairly typical constellation at a local bottom yesterday. Yes, a modest upswing against the backdrop of yields not pushing USD up, is ahead. Crude oil is ready to rise even if Europe hasn‘t made the long-awaited and announced move – it would though surely come, lifting the cost base beyond industrial production on the Old Continent. Will be a sight to behold. Copper has caught a bid, and is ready to consolidate – the superstar of the moment is energy. Waiting for the markets to start to sense the Fed would get out of the way – it‘s too early for that, so brace yourselves, patience for strong gains in real assets required.
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, and have a nice 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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