There is clearly a need to predict the future. Especially now. Is that possible?
No, but we can do the best we can by following the Trend. Another question is about gathering information together. The basic information was this week´s consumer confidence data that came in lower than expected, down from 104 to 98.7, which is the largest drop since 2021. Consumer Defensive Sector has a new strong trend.
The markets expecting the Fed to cut rates 0.75 this year and the Fed itself say 0.5. Bloomberg survey shows 0,75. Result: We don´t know. But we can expect the commentary from Janet Yellen to be important, to finance the debt we need to lower rates. Then there is the employment reports on Wednesday (ADP) Friday, the Non Farm Payrolls, that for the last two occasions were negative. What makes the market believe they will be positive this time? Result: We will find out this week.
Last week´s economy news were once again dominated by Asia. China to be specific. Their stimulus package was large enough. The Stockmarket went up to ATH and are in melt-up mode. The Chinese stocks surged on the news and here in the West the stimulus was positive for Industrial Sector and Basic Materials.
The Sectors:
Important changes for this week was Healthcare Sector that turned negative in the Daily timeframe.
Consumer Defensive Sector went into positive Daily again and looks really strong and I will have an extra look here for interesting trades.
Energy Sector is in negative trend except for in the Monthly timeframe.
All of the other eight Sectors are positive in every timeframe. It indicates a strong stockmarket. Not neccessary a healthy market. But for now we can rest assured that the trend is on our side.
In TSC Premium we will examine the Sub-Sectors to find the next Trades!
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