What a week!
The best week for equities in 2023.
The S&P 500 stock index fell below 4180, which was a support level and then it came roaring back
Some would say it was good earnings reports or that the Federal Reserve did not raise rates last week.
I think it was just one more test of 4200.
For the third time this year, the markets bounced back.
It seems that we are building a floor from which the markets can move further north.
You have to appreciate how remarkable this all is given all the global tension.
To say we climbed a wall of worry would be no small statement.
From the Middle East on multiple fronts, to China to Ukraine, there seems no end to wars and lives lost.
Inflation is real as we all know who has to go to the store or pump for gas.
While you don’t actually see the rising Federal debt, it is there, like the flu, just waiting to ruin your day.
Though unemployment is low, there is concern over what is around the corner.
Analysts have not given up on a possible recession.
It does however give me hope that we keep putting one week in the books after another.
That may not be great for all, but that shows an economy that is far from sluggish.
Rates have gone up, but people are still buying houses.
Sometimes I feel that just the fact that life changes at an ever-increasing rate is hard for people to accept.
It is the only thing that is certain in our lives.
As humans we adapt and evolve as nothing is constant except challenges.
The last couple of weeks does point out the impact of movements in the Magnificent 7.
They literally control the market’s movement north or south.
They have such a huge impact that they can send the averages and indexes up a couple of percent in a day that is rather nondescript
My hope for finding value went up in smoke last week. Not really, as there are and always will be sectors to take advantage.
It is a traders’ market if you love volatility.
I know my limits and will stay on the sidelines.
My trading friends are really being kept busy and at attention.
This is no easy game.
I just think that the real movement had little to do with earnings, but the hope that rates were not going to increase for some time.
There are many speaking of rate cuts.
I just don’t see that happening.
What we did have was Halloween, the Day of the Dead.
Maybe in honor, it was just a case of a dead cat bounce.