Another Bought Dip

S&P 500 was pulled lower overnight on poor AAPL, and AMZN guidance even though current earnings didn‘t disappoint much – odds were any S&P 500 setback would be bought. The premarket downswing brought stocks once again almost to the initial low point (just four points above the waiting buy order) only to see them recover close to unchanged. Forward guidance was shaken off – the effect upon earnings has indeed to wait till early 2023.

Market breadth has been improving, cyclicals and small caps are leading, which is consistent with my thesis that the U.S. is still best placed to weather the storm. The Q4 rally can proceed, core PCE isn‘t to rattle stocks, and I‘m dealing with namely precious metals and crude oil perspectives (more sensitive right now to Fed tightening prospects) in the chart section.

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Gold, Silver, and Miners

gold, silver and miners

Precious metals are still struggling even when the dollar and yields retreat, knowing full well the Fed didn‘t back off – their time hasn‘t yet come. Silver can be counted on to move together with copper higher, but low stockpiles aren‘t yet biting enough. Just some more focus on inflation and not on inflation fighting is required.

Crude Oil

Crude oil is being led by oil stocks, and WTIC can think about taking at least $95 before the year is over.

More By This Author:

Bulls To Get Challenged
Q4 Rally Confirmed
Chop Before The Move

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