Budding Rally

S&P 500 bulls continued late Thursday‘s recovery, and the rally against the bond market odds took off. And it would likely continue for a while, probably stopping at roughly 4,200 support (now resistance). I think stocks wouldn‘t be able to overcome it – just as I think that the reprieve in Treasury yields won‘t last forever and that yields would go on rising. For now though, the stock market trend is up, and we can enjoy growing profits – both tech and value are rising to the occasion but look for tech to start sputtering first. Hard to pin down a reason for Friday‘s rally – wasn‘t it the proximity of the 20% mark off the ATHs and the inbuilt expectation that the Fed would „do something“ (which I told you about on Friday)?

Real assets welcomed the risk-on appetite – it was only gold that declined on the daily rise in long-term yields, but the miners didn‘t confirm the weakness in the least. Silver turned up alongside copper – finally, but this move will still be challenged. Crude oil is of course pushing up higher, and has further to go as oil stocks confirm. Cryptos aren‘t convincing, and the latest calls there (that‘s the sizable short, hedging part to real asset longs) brought around 10,000 points in Bitcoin and over 370 points in Ethereum. As yields though continue their medium-tern rise, as commodities remain unstopped (just look at CRB Index), and as the real economy would keep mired in stagflation, cryptos would remain facing quite stiff headwinds.

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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