The major indexes are poised to open higher as volatility cools off.
The fact that volatility is cooling off is a good sign. And if it continues its downtrend, it’ll be bullish for the market.
Another good sign is that the bond market continues to trade sideways.
We’re at a higher risk for a recession right now… And when we’re at a higher risk for a recession, the Federal Reserve is likely to refrain from raising interest rates to avoid adding further stress to the economy. And by trading sideways, the bond market is pricing that in.
The broader indexes ticked higher after the open as Wall Street looked to build on Tuesday’s afternoon rally.
Chip stocks are gaining strength, as we can see in the VanEck Semiconductor ETF (SMH). When semiconductor and other speculative stocks have bottomed out and are on the way back up, it’s a bullish sign for the broader market.
Another good sign is that the long bond, iShares 20-Plus Year Treasury Bond ETF (TLT), continues moving higher. I expect it to hit the $120 level before falling again because we know that long term, interest rates are going higher. But right now, this upward trend in the long bond is giving the stock market some relief.
As I mentioned in Tuesday’s recap, we have the FOMC minutes from the Fed’s June meeting coming out Wednesday afternoon, which should give us an idea of how the central bank is feeling about its interest rate hikes.
The material in this document is for informational purposes based on our proprietary research. It is not an offering, specific recommendation, or a solicitation of an offer to buy or sell any securities mentioned or discussed herein.
Any performance results discussed herein represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment.
Due to the timing of information presented, any investment performance reflected within this document may be adjusted after the publication and distribution of this material. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, be equal to any corresponding indicated historical performance levels or be suitable for your portfolio.
Any investment results set forth in this document are not net of expenses and execution costs, nor do they account for other relevant trading or investment fees. Please visit wealthpress.com/terms for our full Terms and Conditions.
*Stated results are typical for given period. Past performance is not indicative of any future results. Trade at your own risk.
ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. WealthPress provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day.
DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Wealthpress LLC are for your informational purposes only. Neither Wealthpress nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk.
DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Wealthpress is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit wealthpress.com/terms for our full Terms and Conditions.
0 Response to "Big Consolidation or Major Breakout Ahead? Plus the No. 1 Sector!"
Post a Comment