US Stocks - Fire Sales? Buy the US Dip now ?

Have you got into the rhythm yet?

First comes the Jobs reports at the start of each month, then Consumer reports and finally US Economic / Inflation report.

After the Fed’s preferred Personal Consumption Expenditure (PCE) report is out at month-end, the cycle repeats all over again.

Last week, in my post on overall US economic condition, (click here ! to read), things were looking up.

The US stock market was charting new grounds:

  • S&P 500 notched its best first quarter since 2019, with the index rising +10.2%.

  • Meanwhile, both Dow & Nasdaq gained +5.6% and +9.1%, respectively.

Unfortunately, on Mon, 01 Apr 2024, US market did a roundabout turn and began tumbling.

Does Wall Street have any idea why US market tumbled for 2 days straight? I doubt it very much.

Alhough, the following were reasons cited (see below).

Question is - do you believe them ? Let’s go through the facts.

(1) ISM Purchasing Manager Index (PMI).

On 01 Apr 2024, US’s March 2024 Manufacturing PMI came in stronger-than-expected.

The latest 50.3 ISM reading:

  • Indicates prices are rising, compared to previous month.

  • Implies inflation pressures are accelerating into the spring.

Did market worry, this could influence The Fed to delay interest rate cut? I think “Aye”….

(2) JOLTs

US’s Job openings and Labour turnover for February 2024, ticked up slightly as hiring increased, reflecting continual resilience in US labour market.

  • On Tue, 02 Apr 2024, data from the Bureau of Labor Statistics showed there were 8.756 million jobs open at the end of February

  • This is a slight increase from January’s revised data of 8.748 million.

  • And more or less inline with Wall Street expectations of 8.76 million.

  • Hiring rate also picked up slightly to 3.7%, up from January’s 3.6%. (see above)

  • While quits rate held steady at 2.2% for the 4th consecutive month, suggesting ongoing confidence in the job market heading into the spring.

(3) Central Banker’s socialization.

On Tue, 02 Apr 2024, Cleveland Fed President Loretta Mester was speaking at a National Association for Business Economics event.

Her “hawkish” tone has achieved the desired rubbed off effect, when she said:

  • The patch to bring inflation back to 2% target, would not be smooth.

  • There need to be more evidences of easing price pressures before she is ready to sign-off on near-term rate cuts.

To me, this is the most catalytic catalyst that spooked US market that is still pining for a June 2024 interest cut.

Did she single handedly dent Wall Street hope again? Mmm…..

(4) Long Live The Bond.

On Tue, 02 Apr 2024, Treasury yields are back on the march, with benchmark 10-year notes rising to a late November high of 4.371% in early trading.

This is the highest rate since 28 Nov 2023.

The 2-year notes are also changing hands at 4.722%, on (a) renewed inflation concerns and (b) a pullback in June 2024 interest rate cut bets.

Could this have also siphoned off some liquidity from Equities market ? Think so….

Other Jobs Report

The Jobs reports are not done yet. At least, there will be 2 more: (see below)

  • ADP Non Farm employment - Wed, 03 Apr 2024.

  • US Non Farm payroll - Fri, 05 Apr 2024.

According to data from Bloomberg, the March Non Farm payroll (NFP) report is expected to show 215,000 NFP jobs were added to the US economy in March 2024, with unemployment falling to 3.8%.

Does this mean US market will continue to be jittery until Friday? Maybe, just maybe…

Where Do We Go From Here?

  • Looking at US pre-market indicators for Wednesday (see above), it just might be the 3rd day of consolidation.

  • With another Fed President Bostic’s “mood dampening” media socialization on 03 Apr 2024, think it will be another day of consolidation for the US market.

  • The carefully selected image (see above) says it all, I am at a forked road.

  • I will take a small position in $Alphabet(GOOG)$ if it falls to my entry price.

  • If it does not meet me pricewise, then it is not meant to be.

    There will be opportunities ahead.

  • Besides that, I may take a small position in $SoundHound AI Inc(SOUN)$ provided the price is right.

  • This comes about after my post on the stock. Click here ! here to read & Repost ok.

  • After a quick search, there don’t seem to be other firms with similar voice-recognition AI apps in the market yet - particularly in the Automobile and Food & Beverage sectors.

Strike while the iron is hot, no?

Must ReadClick on below titles to access. Give a like & help to Repost ok. Thanks.

  • Do you think US market will continue to pull back today?

  • Do you think you will “buy the dip” when market is this volatile or just sit it out, ride out the storm?

If you find this post interesting, give it wings! ️ Repost and share the insights ?

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# 💰 Stocks to watch today?(23 Dec)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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Comment26

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  • Jo Ker
    ·04-05
    TOP
    I think we experience the start of the correction yesterday. Take care and trade prudently for all! Huat Ah!
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    • JC888
      Hi, tks for reading my post. A lot hinges on today's Non farm payroll report...
      If data is gd, market shld be reactively positive... Fingers crossed...
      04-05
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  • Great article, would you like to share it?

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    • JC888
      Hi, tks for reading my post and support..
      04-05
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  • Michane
    ·04-04

    Some consolidation. hope it will settle soon & we will all be safe again! 

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    • MichaneReplying toJC888
      most welcome! trade safely [smile]
      04-05
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    • JC888
      Hi, tks for reading my post... It was a pleasant surprise this morning...
      04-04
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  • Sonsonkok
    ·04-05

    Great article, would you like to share it?

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    • JC888
      Hi, tks for reading my post. I have a latest post out this evening... Hope u will catch it too...
      04-05
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  • kohjmz
    ·04-05

    Great article, would you like to share it?

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    • JC888
      Hi, tks for reading my post....
      04-05
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  • peanutz
    ·04-05
    Great article, would you like to share it?
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    • JC888
      Hi, tks for reading my post....
      04-05
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  • TL1M
    ·04-05

    Great article, would you like to share it?

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    • JC888
      Hi, tks for reading my post...
      04-05
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  • [得意] [得意]
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    • JC888
      Hi, tks for reading my post and support....
      04-04
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  • phongy 45
    ·04-04
    time to pick stock ...
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    • JC888
      Agree...
      04-04
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  • JC888
    ·04-03
    Hi, tks for reading my post. I make time to write and share my post.
    Pls help to "Re-post". Tks! Rating is important (to me).
    Would you consider "Follow me" and get first hand read of my Daily new posts? Thanks!). Tks!
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  • KSR
    ·04-04
    👍
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    • JC888
      Hi, tks for reading my post and support...
      04-04
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  • YueShan
    ·04-04
    Good⭐️⭐️⭐️
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    • JC888
      Hi, tks for reading my post...
      04-04
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  • Tom Chow
    ·04-04
    good
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    • JC888
      Hi, tks for reading my post....
      04-04
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