Tech Bottomed?
S&P 500 bears had a decent chance to reverse the premarket bounce, but Nasdaq following AMZN earnings flush refused to show more weakness than a feeble test of QQQ $600. Once $603 was cleared to the upside (happened on third attempt), it was time to expect a slow grind higher beyond tech – I came to this conclusion having looked at QQQJ, MAGS and even IGV.
Gold kept nicely recovering, followed by silver, and even Bitcoin – I'm though not looking for crypto to be (long-term) out of the woods, not by a long shot – significantly lower values await. Who were the beneficiaries this week? The most important markets – Treasuries seeing yields retreat on the short end, and USD is having second thoughts about rolling over to the downside too (wait for next tariff round, for now the bleeding stopped).
This has definitely been a defensive week, and even healthcare (following Medicare prices to come news) scored a solid Friday, that broad was the daily advance. A most justified question is whether that's all over with BTC barely crawling up above $70K...
Not that everything would be hinging on crypto, but it's definitely a sentiment and liquidity indicator, and I view the market as lacking depth still, but on a slow, tricky mend. As I wrote a week ago, it's about good and better earnings (guidance) not being sufficient enough to drive valuations expansion at the moment – and even if the new Fed Chair is perceived as a hawk, I wonder whether he would not cut rates one of the first things when in office.
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Monica Kingsley
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All essays, research and information represent analyses and opinions of Monica Kingsley that are based on available and latest data. Despite careful research and best efforts, it may prove wrong and be subject to change with or without notice. Monica Kingsley does not guarantee the accuracy or thoroughness of the data or information reported. Her content serves educational purposes and should not be relied upon as advice or construed as providing recommendations of any kind. Futures, stocks and options are financial instruments not suitable for every investor. Please be advised that you invest at your own risk. Monica Kingsley is not a Registered Securities Advisor. By reading her writings, you agree that she will not be held responsible or liable for any decisions you make. Investing, trading and speculating in financial markets may involve high risk of loss. Monica Kingsley may have a short or long position in any securities, including those mentioned in her writings, and may make additional purchases and/or sales of those securities without notice.
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