Reprieve No More
S&P 500 bulls didn‘t rise to the occasion, even though HYG was quite constructive early in the day. TLT upswing is however notable, and could point out the acknowledgement of darkening real economy prospects, and the coming decline in long-dated yields I told you about lately. For now, other Treasury maturities aren‘t yet signaling the pressure on Fed to back off tightening, to be there – that‘s a dynamic to play out over the coming few months, not over a few weeks. Thus, the pressure on stocks is on – just as I wrote yesterday, the medium-term direction remains down, down. Right now, we have the unfolding accumulation in long-dated Treasuries, unsettled junk corporate bonds, USD still pushing higher, and tech upswing failing on rising volume (which is a hallmark of weak and premature accumulation in my view).
The liquidity constraints are taking real assets alongside, to a good degree. Both energy stocks and gold miners stabilization, offer a glimmer of hope – a glimmer, that‘s all for now. The short-term direction here remains of the sideways to bearish persuasion, with energy the best insulated of course. Same goes for agrifoods such as corn, wheat and other commodity aces touted lately. Copper and silver are to still remain under the greatest pressure – until you look at cryptos, that is.
Overall, the directions are set across the board, with entry points and open trade parameters to reflect the next key event – local top in the dollar over the nearest week, which would remove a headwind for real assets.
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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