We previously anticipated a less positive week for the previous week as inflation data and Middle-East were primarily the key bearish factors.
However, even with a less than impressive inflation data, we still saw a very strong positive week with some bullish signals: Fear&Greed Index now at Greed(74) edging very close to extreme Greed, and the Vix futures at below 20.
The rallies last week could also be driven by the shift back from Chinese Market as the Chinese Government did not introduce any additional stimulus.
With bank and TSM earnings this week, can BAC do a miracle call like JPM? With lower interest income, will BAC be able to improve its other revenues? We keep a neutral outlook as JPM has an almost equal ratio of consumer banking and investment banking, while BAC relies heavily on consumer banking.
If without any bearish events (war, election, inflation-related), we expect the bullish sentiment to continue this week. As the trading volume for last Friday was relatively low, there is still room for rallies. We would stay cautious for any uncertainties potentially caused by geopolitical tensions, elections, and Feds' remarks on upcoming rate cut.
We anticipate a strong start to the week with some pullback in the mid week, and a recovery at the end of week.
Modify on 2024-10-15 23:43
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