Last week’s review of the macro market indicators suggested, that the equity markets were becoming mixed heading into the next week. Outside influencers saw Gold continuing to hold a range, with an upside bias for any break out while Crude Oil slowly grinds higher. The U.S. Dollar Index looked ready to pullback in the uptrend, while U.S. Treasuries were biased lower. The Shanghai Composite and Emerging Markets were biased to the downside in the near term. Volatility looked to remain non-existent, keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. Their charts were a mixed bag, although with the IWM the strongest, followed by the QQQ building potential energy and the SPY perhaps ready to pullback or consolidate. If the US Dollar Index and Treasuries continued lower, this would be a big tailwind for Equities.
The week played out, with Gold drifting higher while Crude Oil moved up early, but consolidated later in the week. The US Dollar seems to be plateauing while Treasuries jumped higher. The Shanghai Composite found a bottom and bounced higher while Emerging Markets continued their move lower. Volatility bounced off of the lows if you can consider 14 a bounce up but remained subdued. The Equity Index ETF’s consolidated at their recent peaks, with the SPY and IWM near all time highs and the QQQ still behind.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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