To The Moon

Looking at the reactions from the stock market because of the CPI report, I think that the $S&P 500(.SPX)$ will continue to be green. However, I do think that the market is still hesitant as they await the results of the earnings report of the Banks in the U.S. 

I would think that all the banks, such as $Bank of America(BAC)$  would be very much in the green but would give the standard "I expect things to slow down with a potential recession coming". Of course the market would not heed this and take it as a good sign anyway. At this point, you must understand why. The market is very starved for good news. They will interpret all good and bad news very positively. While there is still a possibility that a Tech company's earnings report could dampen spirits, I opine that this is only temporary. The reason? Well, the overarching problem, which is inflation is seen to be dying down. This means all slow down in earnings could be seen as temporary. Conversely, any good news is likely to be amplified more than necessarily, with the market probably having a temporary rally before calming down.

If this is true, I think it will spell bad news for meme stocks. I'm not sure if I've observed long enough but I notice when the market is generally bad, meme stocks tend to do well and vice versa. I would expect $AMC Entertainment(AMC)$ to fall and $Bed Bath & Beyond(BBBY)$  to collapse from its high of $5. I think that this is stock manipulation at its best and I would advise investors entering at this over valued point to remain wary (or just don't enter!).

For STI, so far, things are looking well, but I can tell it's a bit flattish as investors are looking towards the results from the S&P500.

That's my trading Outlook for this week. See you next week!

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