The 10-year treasury yield topped 4% last Thursday and the S&P 500 and NASDAQ made a bottom on the same day. The DOW bottomed on Wednesday, one day earlier. The pundits were yelling for the 10-year treasury to go to 6% based on the sticky inflation data. But the market has looked ahead already by […]
Since the January CPI data was released on February 14 morning, the market participants have talked incessantly about inflation and inflation. The January CPI data was good reflecting a trend of slowing down inflation, but not good enough. The inflation was not low enough to allow the Fed to pause and the employment data continues […]
The January CPI data was hotter than expected, even though the previously released CPI data have established a trend line of decelerating inflation since June 2022. Numerous hawkish Fed officials have come out to voice the need of further rate hikes to ensure inflation doesn’t come back bite us. The market, however, took it on […]
The NASDAQ broke out a three-point down trend line in the last week of January 2023, subsequently it followed up with additional advance right after the February Fed meeting. The Facebook parent company Meta reported earnings on February 1, 2023 after the market close. The street loved how Meta CEO Zuckberg talked about efficiency (cutting […]
The most important stock market adages are “Don’t fight the tape” and “Don’t fight the Fed”. “Tape” means the ticker tape which shows real-time stock prices. This advice essentially advises investors to follow the crowd; buy when everyone else is buying, and sell when everyone else is selling. It’s based on the idea that prices […]
The NASDAQ closed above its 200-day moving average last Friday with heavy volume (29% above 50-day average volume), first time since the Fed induced correction! Now all major indices are above their 200-day moving average and that’s a definite bullish statement if the 200-day moving average is not violated on the downside. The Fed
