November 14, 2022 (Investorideas.com Newswire) S&P 500 confirmed Thursday's sharp upswing with more strength, and that's great for all of our long portfolio bets. Smashing turn continues in a taking no prisoners style (fresh China corona rules easing speculation helped) - the two key fixtures propelling markets higher, are the sharp USD downswing that I called for in Oct, and stabilization in yields - a steep decline taking e.g. the 10-year yield to 3.82% from above 4.20%.
Such an environment is conducive for the badly beaten tech and communications to outperform value on a short-term basis, in essence for as long as the retreat in yields last. Industrials, materials and oil stocks wouldn't do badly in the least either, perhaps financials as well. Also, it launches precious metals and commodities out of their sideways consolidation to the upper echelons. Yes, Thursday was an important medium-term catalyst, with strongly bullish implications. While till Oct, you were fine with cash, shorting paper, and long energy with USD, now it's the greenback that would suffer more often than not while everything else (apart from the tectonic event overshadowing crypto) mostly rises.
Why do I say only medium-term?
Remember we didn't get any Fed pivot, any Fed pause - anhd today's cautious Fed words confirm that. The bets are merely on deceleration of rate hikes, correctly so. Fed is still shrinking its balance sheet. More rate hikes are to come in 2023 - the Fed doesn't sound to be done, the risks of more tightening are clearly there. The real economy isn't yet in a recession, and in Fed's view inflation isn't defeated. Labor market remains tight, and should it prove a source mirroring heightened inflation expectations (think households), the Fed will take its aim. This Q4 rally that would last into Jan, is running on borrowed time, with strong short-term momentum, but would face the fate of the summer rally. This European morning's outlook is being confirmed at the onset of US session.
Today's analysis is exceptionally free for everyone to see the typical extensive length content and scope - in recognition of a smashing prior week, one for the record books.
Keep enjoying the lively Twitter feed serving you all already in, which comes on top of getting the key daily analytics right into your mailbox. Plenty gets addressed there, but the analyses (whether short or long format, depending on market action) over email are the bedrock, so make sure you're signed up for the free newsletter and that you have Twitter notifications turned on so as not to miss any tweets or replies intraday.
Let's move right into the charts (all courtesy of www.stockcharts.com).
S&P 500 and Nasdaq Outlook
Solid S&P 500 and Nasdaq upswings with volume behind them - the momentum is strong, and likely to continue through Nov without much of a hiccup.
Still risk-on, no warning sign in bonds - the retreat in long-dated yields should continue over the nearest weeks.
Gold, Silver and Miners
This is a very bullish chart, one that got confirmed with a powerful upswing that's not yet pausing much. Precious metals are to enjoy the weakening dollar as much as commodities, with silver learding gold.
Crude oil has been bidding its time over the week just gone, but it's well positioned to extend gains by breaking out of the recent long consolidation. Note the symmetry to the left and right of the Sep bottom - pretty nicely coiled spring now.
Copper is surging, and my Oct long call has been vindicated - the red metal is leading the commodities sector, which is an important sign.
Bitcoin and Ethereum
Encouraging short-term sign is the double bottom holding, but I'm not counting on this being the ultimate crypto low.
Thank you for having read today's free analysis, which is a small part of the premium Monica's Trading Signals covering all the markets you're used to (stocks, bonds, gold, silver, oil, copper, cryptos), and of the premium Monica's Stock Signals presenting stocks and bonds only. Both publications feature real-time trade calls and intraday updates. While at my homesite, you can subscribe to the free Monica's Insider Club for instant publishing notifications and other content useful for making your own trade moves on top of my extra Twitter feed tips. Thanks for subscribing & all your support that makes this great ride possible!
Stock Trading Signals
Gold Trading Signals
Oil Trading Signals
Copper Trading Signals
Bitcoin Trading Signals
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.
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/