Powell to the rescue
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
S&P 500 coudln't defend 4,392, and 4,365 only temporarily provided support. On bond market fears, 4,354 gave way – but jubilation over a good auction, didn't last. Tech stocks barely provided a refuge, and semiconductors didn't catch breath yesterday.
Yet I wonder whether these bearish signs would hold for long, as EURUSD is cushioning any yields triggered downswing attempt. Q3 earnings aren't proving that bad, retail sales came strong while housing was mixed – too many cyclicals with Russell 2000 were beaten yesterday, so we can look for a rebound attempt. The tentative longs in the intraday channel are looking good.
Too early yet to say whether in the very short term it would be one of a dead cat bounce variety, but I think this has lower probability than a local bottom being put in – why and what to watch, I'm explaining in the premium chart section. I'm still of the opinion that Q4 is to bring seriously higher stock prices, and that S&P 500 is holding up well in the Mideast turmoil.
The weak spot is the Treasuries market, where no retreat from yesterday's 4.90% brings my 5.10% - 5.20% technically doable 10y yield call, ever closer over the coming weeks.
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.
Stocks and Sectors
NFLX and XLC would reverse latest weakness, and take on $390 shortly.
Bond market is indeed intent on doing more tightening for the Fed, and shows risks of going a little parabolic in the days ahead. On some days, that would hurt stocks more than on others – today, it'll be one of lesser impact days – the best ones for stocks though are to be those of noticeably retreating yields (4.40% would be a technical target for the months ahead).
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!