To The Moon

NIO ET7

When I switched off the lights at 1:30am Singapore time this morning (01 Dec) - [12:30am (US time) ], I was wearing my smile to bed.

Its because NIO's $NIO Inc.(NIO)$ stock price had "rocketed" +17.52% (approx) to $12.25, give or take.

That was about an hour before Mr Powell 1:30pm speech at The Brooking Institution, Washington D.C.

"What else could he say that he hasn't already covered on so many other occasions ?" I muttered as the lights went off....

I sure was mistakened this morning.

Mkt perf 30 Nov / Pre-mkt Indicators 01 Dec

Just look :

• DJIA : +2.18% (+737.24 to 34,589.77).
• S&P 500 : +3.09% (+122.48 to 4,080.11).
• Nasdaq : +4.41% (+484.22 to 11, 468.00). Star performer of the day !

Was the surged in the 3 indices all due to Mr Powell's credit ? Of course not !

• US GDP Q3 2022 increased at a +2.9% annual rate, based on government estimate. More importantly, it means the economy is not heading into recession; at least not touted by the likes of elon musk, the banks and ms wood (of course !)
• Personal Consumption Expenditure(PCE) index, which measures the price of consumer goods & services, increased +4.3% in Q3 2022, an upward revision of +0.1%; clearly indicating a slowing slow no ?
• US job openings fell (-0.35) to 10.33 million in Oct, according to Bureau of Labor Statistics' Job Openings and Labor Turnover Survey (JOLTS) survey.

In all, it means the US economy is slowing down; that is what the Fed is working towards in a bid to stem and brings inflation back to 2%.  

All these official reports are signals that the Fed's interest hike policy is working its way thru the system. 

It needs time for the effect to kick in no ?

However, market still need a reason to rally and Mr Powell gave them the ammo at 1:30pm. 

Honestly (to me) the points mentioned (content) remains status quo. The Fed has mentioned them many times over by different Fed member.

Briefly, Mr Powell's speech concluded the followings :

• Fed understands the challenges and will slow down interest hike (not halt - pls note).
• Fed will have to assess how much more interest needs to be raised in its quest to control inflation 
• Fed will have to assess the length of time required to hold high-interest-policy at a restrictive level.

With the same content, presented in different wrappings was all it took for the buy-in and Market took off - just like that !

While I am elated with the "fantastic" recovery, I am equally skeptical in part as well. Fear the rush is all orchestrated by Wall Street to further entrap any newbies.

Am I over cautious ? Perhaps !

3 Indexes - Moving Averages

 Technically, "safer bets" would be stocks in both Dow Jones and Standards & Poor's. This is because both indexes are above the 200 days Moving Average. 

Hope this is a definite behaviour. To be prudent, monitor for a few more sessions ? Whahahah, there I go again.

Energy sector ?

My focus for today will still be Energy sector stocks. 

Looking at the pre-market indicators, Oil is slated to fall -0.21%. 

Maybe today will be my lucky day ? I will be hawking over :

• $Cheniere(LNG)$ 
• $Southwestern(SWN)$ 

Asia mkt closing on 01 Dec 2022

Think the positive sentiments from Asia market will have its vicious-cycle effect on US market. 

If so, what will you be looking at today ? Share in Comments section below ? Thanks.

Please "Like" this post ? Thanks in advance. The rating is important to me.

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