Share on StockTwits

Bonds Didn't Disappoint

 

December 3, 2021 (Investorideas.com Newswire) S&P 500 sharply rebounded, and signs are it has legs. My key risk-on indicator to watch yesterday, HYG, turned up really strongly. No problem that the dollar didn't decline, it's enough that financials and energy caught some breath. We're turning to risk-on as Omicron didn't cause the sky to fall. What a relief! Seriously, it doesn't look that hard lockdowns would be employed, which means the market bulls can probe to go higher again.

What I told you on Wednesday already in the title It's the Fed, Not Omicron, today's non-farm payrolls illustrate. Such was the game plan before the data release, and this refrain of bad is the new good, is what followed. The Fed is desperately behind the curve in taming inflation, and its late acknowledgment thereof, doesn't change the bleak prospects of tapering (let alone accelerated one) into a sputtering economy. What we're experiencing currently in the stock market, is a mere preview of trouble to strike in 2022.

We're in the topping process, and HYG holds the key as stated yesterday.

Let's move right into the charts (all courtesy of www.stockcharts.com).

S&P 500 and Nasdaq Outlook


S&P 500 returned above the 50-day moving average, the volume wasn't suspicious - the bulls have regained the benefit of the doubt, and need to extend gains convincingly and sectorally broadly next.

Credit Markets


HYG successfully defending gained ground, would be a key signal of strength returning to risk-on assets and lifting up S&P 500. There is still much to go - remember that the sharpest rallies happen in bear markets, so all eyes on HYG proving us either way.

Gold, Silver and Miners


Precious metals weakness looks deceptive and prone to reversal to me - the real fireworks though still have to wait till the Fed gets doubted with bets placed against its narratives.

Crude Oil


Crude oil plunge is getting slowly reversed, about to. Beaten down the most lately, black gold is readying an upside surprise.

Copper


Copper is turning higher, taking time, but turning up - it's positive, but still more of paring back recent setback than leading higher. I'm reasonably optimistic, and acknowledge much time is needed to reach fresh highs.

Bitcoin and Ethereum


The bearish ambush of Bitcoin and Ethereum didn't get too far - crypto consolidation goes on, no need to panic or get excited yet.

Summary

S&P 500 is in a recovery mode, and the bulls look ready to prove themselves. The keenly watched HYG close presaged the odds broadly tipping the risk-on way, just as much as cyclicals did. It's a good omen that commodities are reacting - not too hot, not too cold - with precious metals in tow. In tow, as the Fed isn't yet being doubted - the NFPs are a first swallow of its inability to carry out tapering plans till the (accelerated or not) end.

Thank you for having read today's free analysis, which is available in full here at my homesite. There, you can subscribe to the free Monica's Insider Club, which features real-time trade calls and intraday updates for all the five publications: Stock Trading Signals, Gold Trading Signals, Oil Trading Signals, Copper Trading Signals and Bitcoin Trading Signals.

Thank you,

Monica Kingsley
Stock Trading Signals
Gold Trading Signals
Oil Trading Signals
Copper Trading Signals
Bitcoin Trading Signals
www.monicakingsley.co
mk@monicakingsley.co

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.

More Info:

Investorideas.com Newswire

This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders


Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.

More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ and tickertagstocknews.com

Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp


Follow Us on StockTwits