S&P 500 made two good intraday returns, but was overpowered by waning rotational strength and internal tech deterioration. Neither financials nor healthcare did their job too well – and when both precious metals and crypto start paying attention to rising yields and dollar, the day is set to be a risk-off one.
The notion of manufacturing bottom being in, is what can help stocks stem the developing selling pressure. Rising yields would though keep a lid on tech and many real assets – USD has very good prospects of breaking above 102 successfully. In today‘s session, the very optimistic and lagging indicator (GDP) boosting soft landing hopes as much as unemployment claims Thursday, would be checked thoroughly as the stock market advancing rank narrows.
This is quite apparent in gold already, so I made a cautionary intraday update – this is roughly what Trading Signals & Intraday Signals combo subscribers can expect if they trade also gold and oil intraday – more exclusive updates over Telegram, mail me if interested.
Returning to rate hikes and inflation, especially after the great oil run of late:
(…) Rate hikes aren‘t over, and we‘re in for return of inflation 2H 2023. That‘s though no issue for the stock market, which would still keep rising without a steep fall, driven by industrials, materials, energy, financials and many healthcare stocks – together with tech and discretionaries. Smallcaps and midcaps too as the theme is broadening of market breadth still. Communications aren‘t to be lagging as badly as e.g. staples either. That‘s for Q3 at least.
The Fed isn‘t to pivot – in current circumstances of real economy not falling apart, that would require a steep market drop, which is unlikely. Banking is gradually sorting itself out, deposit outflows aren‘t burning and commercial real estate (collateral deterioration) is still far away. The grind higher in stocks is clearly there, on more than a medium-term basis.
Way more stock market coverage incl. lessons from breadth and daily levels, follow in the rich chart section.
Keep enjoying the lively Twitter feed via keeping my tab open at all times (notifications on aren't enough) – combine with subscribing to my Youtube channel, and of course Telegram that always delivers my extra intraday calls (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 I'm the most blocked market analyst and trader on Twitter.
Let‘s move right into the charts (all courtesy of www.stockcharts.com) – today‘s full scale article contains 5 of them.
Gold is getting a little ahead of itself even if it‘s as of Sunday the Dec contract that‘s being displayed. The sellers are on the move, target the (Oct contract) $1,960s at least.
Thank you for having read today‘s free analysis, which is a small part of my site‘s daily premium Monica's Trading Signals covering all the markets you're used to (stocks, bonds, gold, silver, miners, oil, copper, cryptos), and of the daily premium Monica's Stock Signals presenting stocks and bonds only. Both publications feature real-time trade calls and intraday updates.
While at my site, you can subscribe to the free Monica‘s Insider Club for instant publishing notifications and other content useful for making your own trade moves.
Turn notifications on, and have my Twitter profile (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!
