To The Moon

My investing muse

One of the biggest news from last week is inflation (YoY) reaching 6.5%, a dip from 7.1% from the previous month. While the market is glad about the drop, the amount remains a distance away from the Fed’s target of 2%. With better-than-expected jobless claims, this implies that the Fed can continue to be hawkish with the interest rate in early February 2022. What would it be?

While there is a US market rally, it is also to note that China/Hong Kong has entered a bull run with the recent results. There seems to be some reprieve after weeks of decline. If we are still having underperforming stocks, let us consider selling them off amidst the coming rally.

Bitcoin has reached $20k & the market has a rally. These seem to have drowned out the talks of recession in the last weeks of December 2022. While the market can be forward-looking, we should not “forget” the concerns of the coming recession. Will this be the anticipated reversal or will this be a bull trap? Schwab defines the bull trap as the following:

In falling markets, traders need to be on the lookout for what are called “bull traps.” A bull trap refers to a short-term rally during a downtrend that “traps” the bulls who mistook it for the start of a new uptrend. Short-term rallies are actually pretty common within bear markets.

This earnings season will set the tone for the market. Will this lead to a market recession or the start of another bull run? Let us continue to monitor this closely. Personally, I am more hopeful for a bearish run than a bullish one. Thus, I am planning to research and shortlist companies for now.

@TigerStars

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