the stock market rally. The market is expecting a rate hike of 25 basis point. A rally will breakout if there is no rate hike.
There was a reduction in PPI but an increase in core CPI last week. Banks are having diarrhea and labors were tight. Retail sales were down.. Fed would have a very difficult decision to make.
This is not the key moment.Thjs is just current events and short term market focus.
In the coming months these risks will benefit bare
1. US enters recession
2. Company earnings take a hit
3. Tight credit conditions weigh down on everything.
Presently, hard to predict where US market will go. Stock markets are down but are not under water yet. Nasdaq has a breakup despite all the banking problems. There was a capitulation too without the market crashing thereafter and this shows the market is quite resilient. Unless this breakup is a bull trap; if not, it can take Nasdaq and other markets to higher highs.
![[Image: Screenshot-2023-03-22-102925.jpg]](https://i.ibb.co/tqd5Mcj/Screenshot-2023-03-22-102925.jpg)
Mouse trap
quickly load up and wait to huat big big.
Contrarians would like this kind of story
1) Market got what they wanted, 25 BSP
2) Fed signaled only 1 more rate hike for 2023
Yet the market is down because Yellen said “blanket deposit insurance hadn’t been considered or discussed by her department"
Imagine the market has survived after so many rate hikes, inflation rate scares, and even bank failures and yet the market was worried about uncertainty, quibbled about the blanket insurance for depositors.
https://www.marketwatch.com/story/this-i...3-5d5e1d6f
Powell looks like Magneto... Lol