← Go back Jul 07, 2023
S&P 500 didn‘t look back following the tame core PCE report, clearly betting on no recession and Fed to declare victory against . For all the positive broadening of stock market breadth in cyclicals and tech alike, other asset classes incl. bonds didn‘t get as carried away, meaning that stocks are likely to do a shallow consolidation of steep Friday‘s gains just next (today and tomorrow premarket). As I have written on – on top of dip buying being the name of the game following Thursday‘s reaction: Apart from the recession signs recounted in prior (1st paragraph), let‘s bring up some more of medium-term thoughts regarding with all that follows for earnings, profit margins and the P/E when push comes to show later in Q3: As bank reserves have started declining (and it‘s no longer just on reverse repos to offset TGA increases), the buyers of all assets would get increasingly selective. Keep enjoying the lively via keeping my tab open at all times (notifications on aren’t enough) – combine with subscribing to my , and of course that (head off to Twitter to talk to me there), but getting the key daily analytics right into your mailbox is the bedrock. So, make sure you‘re signed up for the free newsletter and make use of both Twitter and Telegram – benefit and find out why . Let‘s move right into the charts (all courtesy of ) – today‘s full scale article contains 7 of them. 4,455 was comfortably overcome, and 4,474 was the lowest the intraday correction could reach. Tech not limited to the big names, was the driver, more than amply supporting the usual XLI, XLB, XLE and IWM. Very positively, XLF didn‘t keep much behind, and even XLV was bought into (seconds biggest SPX sectoral weighting, and healthcare didn‘t do universally fine lately). Consider that USD wasn‘t weakening throughout all of the regular session (it actually remained on guard following the bulk of the risk-on rush), and that means we can look forward for a cautious entry to the holiday shortnened week incl. Wednesday premarket – 4,432 isn‘t likely to be approached really, any consolidation would happen rather in time than in price. did predictably improve, and there is no sign of major exhaustion, let alone bearish divergencies on the dailies anywhere. FOMO rush and quarter end positioning at its best. Still good even if the advance-decline line could have been stronger – new highs new lows count for me more as regards Friday. Miners move Thursday telegraphed better metals‘ showing Friday, and here we go as TLT, TLH also moved up. sentiment should though remain cautious, we‘re not on the doorstep of a steep upswing here – basing continues. Thank you for having read today‘s free analysis, which is a small part of covering all the markets you’re used to (stocks, bonds, gold, silver, miners, oil, copper, cryptos), and of the daily premium presenting stocks and bonds only. Both publications feature real-time trade calls and intraday updates. While at my site, you can subscribe to the for instant publishing notifications and other content useful for making your own trade moves. Turn notifications on, and have my (tweets only) opened in a fresh tab so as not to miss a thing – such as extra intraday opportunities. Thanks for all your support that makes this great ride possible! Thank you,
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