Image Source: Unsplash
 

S&P 500 bears didn‘t disappoint yesterday, remaining in control as the focus shifts to recession signs. Both ISM services PMI and non-farm payrolls employment change data continued on Tuesday‘s note, and the short end of the curve is reaching for fresh lows, with a 10-y yield well below those (at 3.30% already).

This is not what any risk-on drive thanks to stabilization in financials looks like – the deposit outflows continue, and Fed isn‘t capitulating in its still tight drive, exposing the prior rally to be only a bear market one (you knew). Job market deterioration is getting increasingly confirmed not just through this week‘s unemployment claims, but notably an even higher figure revision the week before. The Mar-Apr time window for deterioration discussed is clearly here.

Risk-off day ahead but look for real assets to keep showing resilience…

Keep enjoying the lively Twitter feed via keeping my tab open at all times (notifications on aren’t enough) – on top of getting the key daily analytics right into your mailbox. Combine with Telegram that never misses sending you notification whenever I tweet anything substantial (head off to Twitter to talk to me there), but the analyses over email are the bedrock.
So, make sure you‘re signed up for the free newsletter and make use of both Twitter and Telegram so as to benefit from sophisticated talk and extra intraday calls .

Let‘s move right into the charts (all courtesy of www.stockcharts.com).
 

Gold, Silver, and Miners

A fine show of strength in not really retreating – precious metals are digesting the emergence of recession trades coupled with oil returning back above $80, and not about to retreat really. Expect copper to remain likewise resilient while many S&P 500 stocks (oil stocks and miners would be of course an exception) would start getting under increasing selling pressure on poor earnings, economy, and hawkish Fed outlook.

More By This Author: