To The Moon

After another green day on Monday, the Bloomberg’s index of the 500 largest US stocks (not counting the top seven tech companies) reached a record high. Meanwhile, the major seven tech firms are still 8% below their highest point. That said, the broader market, apart from these prominent companies, has completely bounced back from the recent decline.✅ $Apple(AAPL)$ $Alphabet(GOOG)$ $Alphabet(GOOGL)$ $Amazon.com(AMZN)$ $Microsoft(MSFT)$ $Meta Platforms, Inc.(META)$ $Tesla Motors(TSLA)$

A recent Goldman Sachs report states that hedge funds entered the US equity market last week at the fastest pace in two years, as market participants generally believed that the Fed’s current rate hike cycle was over and hedge funds invested money in US equities that were in a correction phase, causing US equities to rally sharply in early November.FILE PHOTO: A screen displays the trading information for Goldman Sachs on the floor of the NYSE in New YorkGoldman Sachs' Prime Brokerage trading division stated in a recent report that hedge funds around the world aggressively bought shares of the U.S. stock market in the week ending Nov. 3, marking the largest buying in five days since December 2021.Goldman Sachs said in a report that this has put some cautious hedge fund traders in a dilemma

This week, Goldman Sachs raised its oil $WTI Crude Oil - main 2311(CLmain)$ price target to $100 once again, based on OPEC production cuts compounded by rising demand offsetting a sharp increase in U.S. supply.Meanwhile, while gasoline prices have risen in the U.S., sales of electric vehicles have fallen rather than risen. In Europe, the de-industrialization of Germany is no longer in the news, as the country's auto industry prepares for China's electric vehicle boom; What’s more, Brussels is working to build an energy transition supply chain from scratch.Offshore wind developments are being canceled one by one both in Europe and the U.S., and European solar developers are complaining that cheap Chinese solar panels are making it difficult for

The "August curse” has occurred, the $S&P 500(.SPX)$, $NASDAQ(.IXIC)$ , $DJIA(.DJI)$ closed down 1.77%, 2.17% and 2.36%, respectively, on a monthly basis.September is usually the worst month for U.S. stocks in history.According to CFRA data, since 1945, the $S&P 500(.SPX)$ has fallen more than half the time in September since 1945, with an average return of -0.73%.But this September may not be as bad as history predicts.This is according to statistics from Carson Investment Research: based on the statistics when the $S&P 500(.SPX)$ has risen more than 15% in the fir

Over the last two weeks, Chinese stocks such as Pinduoduo, Alibaba, Li Auto, and XPeng have demonstrated significant upward momentum. Now, let's examine the technical analysis of their respective charts. $Pinduoduo Inc.(PDD)$ PDD Weekly Chart Pinduoduo's stock is on the cusp of breaking through a notably resilient resistance level spanning 98-110, which has taken shape over the past few years. Historical data shows that previous breakout from this level led to all-time highs. Nonetheless, breaching this resistance demands a considerable effort, suggesting it might be prudent to adopt a bullish stance only after this hurdle is surmounted. $Alibaba(BABA)$ BABA Weekly Chart Over the course of a year, Alibaba'

My investing muse‌ The week ended with a drop in CB Consumer Confidence, JOLTs Job Openings, ADP Nonfarm employment change and an increase in unemployment from 3.5% to 3.8%. Manufacturing PMI continues to point to a contractual in domestic manufacturing in the USA. It is not all bad news as we received a breather in bigger bigger-than-expected drawdown in crude oil inventories (that implies an increase in production). The market seems sandwiched between good and not-so-good news with the market largely hopeful for a sooner Fed pivot (where interest rates should be cut). The Fed does not think like the market and needs to do its bit to balance employment and inflation with its main tool of interest rate. The jobs, unemployment and inflation data would guide them in their decisions. The lat

On the last trading day of Aug 31, US market did not manage to end on a “high” as many retail investors had hoped. The “third time is a charm” magic did not take place. Could it be due to the release of US’s Personal Consumption Expenditure (PCE) report for July 2023? When evening arrived: DJIA: -0.48% (-168.33 to 34,721.91). For Aug 2023, the 30-stock Dow dropped -2.36%. S&P 500: -0.16% (-7.21 to 4,507.66). Index soared +21% in the first 7 months. For Aug 2023, the broad-market index lost -1.77%. Nasdaq: +0.11% (+15.66 to 14,034.91). Only index registering a 5th consecutive win. But still suffered its worst monthly loss of 2023. For Aug 2023, the tech-heavy index lost -2.17%. The culprit that led to US market Thursday's mixed performance was none other than US’s July 2023 Personal Co

1. A growing number of Chinese cities are heeding the call to relax property purchase rules to help reignite demand. The cities of Xiamen and Wuhan followed tech and manufacturing hubs Shenzhen and Guangzhou, as well as four other cities, in allowing homebuyers to avail of lower loan rates for first-time purchases. Initial down payments were also lowered to 20% for first-time buyers and to 30% for second-time buyers - significantly lower than the prevailing 50% or higher down payment often sought by banks. However, two of China’s most important cities - Beijing and Shanghai - have yet to loosen their property purchase rules. Existing homeowners with mortgages can also renegotiate with banks to lower their mortgage rates following repeated rate cuts by the PBoC this year.

Learnings and conclusions from this week’s charts: $S&P 500(.SPX)$ The August price action looks like a bull market correction.However the correction drivers look to be turning down again and the market rebound has stalled at short-term overhead resistance.Seasonal downdrafts are most intense typically in late-Sep/early-Oct.Retail flows, hedge fund positioning, corporate buybacks, analyst earnings estimates are all displaying clear bullish/extreme optimism.Meanwhile the macro remains murky (e.g. from charts this week show JOLTS jobs jitters, student loan payments unpausing).Overall, there’s definitely a case to be made that the August sell-off was a sort of healthy correction, but at the same time, it might be a little healthier if it cleared