To The Moon

Markets reaching a tipping point

Thursday saw an encouraging session for the general markets. $DJIA(.DJI)$, $NASDAQ(.IXIC)$and $S&P 500(.SPX)$each posted respectable gains and the Nasdaq led the markets which was not surprising being the one most sesensitive to rate movements.

Now that everyone has accepted that inflationis here to stay and that rising rates are inevitable until it is brought under control, the narrative has shifted to 'Are we able to avoid a recession?' and if we are going to get a recession, what kind of recession will it be?

Hence the job data coming out today might be closely looked at as it might give an indicatoon at how much the Feds are going to raise rates by. This Fed is data driven and they are likely to look at all recent datas to justify their decisions. And a strong labour market will give them more leeway to frontload rates to get a grip on inflation whilst trying to navigate a soft landing so called to say.

A weak data might actually give the bulls impetus as that might actually reduce the Feds likelihood to increase rates wantonly and that might see the rally continuing.

Not much on the technical aspect as I am still monitoring the 3900-3950 levels which if surpassed might see a continuation to the 4100-4300 levels which I believe is where the rally will fizzle out and the markets fall back. The market action from there might indicate if the bottom is in or if we might actually see another leg down. So do stay cautious still.

Stay safe 😊