US Market On 03 Apr 2023. Time To Get Into Energy ?
US Market on 31 Mar 2023 (Fri) & past 4 days performances
The US market ended Fri, 31 Mar 2023 on a “high”.
This marked the 3rd session of gain in a row, starting from Wed to Fri (refer to above diagram).
Catalysts Pushing US Market Along
With Q1 2023 earnings reporting season not yet in full swing, I think the 2 main catalysts that helped to push the market along were :
(1) Bank Contagion Fear Has Ebbed.
After almost 3.5 weeks of drama in the Financial sector, the dust have began to settle.
The fury rate of withdrawal has slowed significantly.
Like it or not, investors are put the banking crisis in the rear-view mirror.
Until the Fed’s review report is out on 01 May 2023, no amount of concern/s is/are going to matter.
The report’s focus centers on the supervision and regulation of the bank. Maybe new legislations maybe introduced or existing ones tightened; all will be revealed in good time.
(2) Personal Consumption Expenditure (PCE) for Feb 2023
US PCE for Feb 2023 was released on Friday.
Inflation continued to fall by -0.3% to 5.0% (Jan 2023 PCE was 5.3%).
The slightly “better” than expected data of 5.1%; provided the next impetus pushing the market in upwards fashion when market commenced trading in the morning.
By The Time US Market Closed Off Q1 2023
DJIA : +1.26% (+415.12 to 33,274.15).
S&P 500 : 0.0% (4,109.31).
Nasdaq : +1.74% (+208.44 to 12, 221.91). Composite index has broken thru key resistant level of 12,000 once again.
Respective Index’s Moving Average
Timely to take a look at respective index’s moving averages because (a) its been 7 days since my last analysis and (b) to have a sense if US market is in a “bull” or “bear” territory.
I have introduced RSI’s reading for each index to show if it has been oversold (RSI-30 or below) or overbought (RSI-70 & above).
Both S&P and DJIA indexes’ are tracking above their respective moving averages.
Nasdaq index has been pulling further away from its moving averages.
In summary, it does seemed to indicate that the US market is on a roll.
Were You Surprised With The Latest Moving Averages / RSI ?
Not surprised about Nasdaq index because it remained status quo. However with RSI-66, it is edging towards the oversold limit (RSI-70).
Not surprised about S&P 500 index because previously it was about to overtake its 50day-ma. With 3 sessions of gains last week; the overtake is expected. Similar to Nasdaq, with RSI-63, it is edging towards oversold too.
I am surprised with DJIA index, pleasantly. Previously it was trailing its 200-day, 50-day and 20-day ma. In just a week and its overtaken its moving averages. With an RSI-59; still a wee bit from oversold. Perfect !
What “Long Term” Strategy To Adopt On The First Trading Day of Q2 2023 ?
I am looking at the pre-market indicator for clues this time.
Without a doubt, Energy stocks will be my go-to investment for this quarter.
Believe it or not, I have mentioned about my belief in my other post where I shared my personal view on Q1 2023.
I have highlighted about referencing The Oracle of Omaha.
Click here to find out which stock I have mentioned !
I think I have this in the bag because :
Apart from the “good” news about OPEC+ members decided to cut oil output; when tallied up - the cut pledges comes up to a whooping 3.66 million barrels per day (bpd).
This announcement on the eve of the virtual meeting of an OPEC+ ministerial panel today has already “impacted” oil pricing that “surprisingly” had been slipping lower recently.
Oil was at $75.55 when trading ended on Fri (31 Mar 2023).
The futures oil price stands at $79.98 (data taken at 5pm singapore time)
Needless to say, I think Energy stocks’ prices should be zooming up today.
More importantly with the promise to keep the oil-cut until end 2023; the immediate future energy stocks cannot be brighter now.
Do you think Energy stock is the way to go ?
Do you think US market will continue to zoom upwards in Q2 2023 ?
Please give a “LIKe” ok. Thanks. Your rating is very Important to me. Thanks, thanks.
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.
This is my latest post. Njoy. Give a "LIKe" ok. Tks!
.
.
.
@JonathanT @fongms @heyuok @Lisa688 @PhilipChow @Goldlim @lcloud @Reddragon @Andy Kong @San48 @wongps @BenWong78 @Ah Girl @cheche @1688NG @RichWife @Beatricehoxu @Rainy M @EspressoShot @Shahfarid @sinneDteo @boohuang @PatrickTay @Sharooonnnnn @hoon @Ivansjy @FredTeo @A1Broker @Money168 @Tclee @jiaqian @mason85 @Elmo.ek @RT126 @NsaidN @roanngoh @Esther loh @CHYEN @LittleChive @雨点尔 @WAY78 @kamy @AeroNg @bzwu @xebona @JackOATrades @AshLim @LunaticETF @Lendal @PhilipChow @PingPing80 @badinvestor @MoreThanGold @Trician @wallence82 @jochen @soonglee @pointe @JQ_3321 @Tanken @HengOngHuat1 @SQ03 @Adewoon @mastergary @ZzzoO @williamang @noobiee @Puran @vaineo @HS94W @PeiLing_Val @setia100 @Chchong @Blurtadpole @fusy @Alexshia @Moneyong @rachhy @CloudLoo @Jyozu @Tiggy invest @kel80 @Ricmanlok @blessings @一句 @Fern29 @Ghhjji @Kimoqi @chongkai14
Do consider to "Follow me" so you could read my daily posts first hand. Tks.