No Capitulation Yet

S&P 500 washed out yesterday, and may hesitate a little around 4,000 next. But the downtrend isn‘t over, yields keep rising relentlessly, propelling the dollar. A long-term buying opportunity for S&P 500 isn‘t yet here, stocks haven‘t yet puked. But we‘re getting there. It‘s only that Treasuries turned up, which is likely to bring a brief relief to tech. We could be looking at a modest risk-on turn following yesterday‘s risk-off one taking down practically everything in its path.

As stated already, it‘s copper with silver that find themselves most pressured during such selloffs. Little wonder given the darkening real economy prospects – the forward looking indicators haven‘t yet deteriorated enough so as to credibly threaten recession, which would likely make the Fed back off from tightening. So, there is more pain ahead, and yesterday‘s puke was manifest in cryptos as well, where there are also profitable trade decisions to enjoy. Real assets in the current circumstances would benefit from any risk-on whiffs in the face of broad liquidity constraints, and the topping dollar with declining yields would provide additional tailwinds outweighing recessionary concerns – and that moment is approaching.

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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Thank you,

Monica Kingsley
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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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