Partying On Meets USD Upswing

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

S&P 500 and Nasdaq Outlook

S&P 500 and Nasdaq

Friday‘s result could have been worse, way worse – and shows stocks still remain focused on money printing more than anything else.

Credit Markets

HYG, LQD and TLT

Credit markets posture remains risk-on, and the inflation worries are reflected in the quality instruments. High yield corporate bonds remain in an uptrend, supportive of risk taking.

Gold, Silver and Miners

gold, HUI and silver

Precious metals benefited strongly on the assumption of Fed erring on the side of tardiness in announcing taper – inflation expectations are remaining tame thus far. Gold and silver ascent is though getting increasingly more confirmed by the miners turning higher too.

Crude Oil

crude oil

Crude oil ran into a setback, but didn‘t roll over decisively – some more sideways trading before higher prices emerge, is likely. Look to the dollar for direction.

Copper

copper

CRB Index continues its strong recovery, and copper is taking a brief rest at the 50-day moving average. While weakening real economy would hurt it, the red metal‘s supply/demand situation would cushion temporarily lower prices. Technically, the bulls better step in fast and take prices solidly above 4.40 in order to steer clear of the danger zone.

Bitcoin and Ethereum

Bitcoin and Ethereum

Following long weekend gains, cryptos are under pressure today – it looks like a daily setback and not a reversal. Golden cross is approaching.

Summary

NFPs disappointment isn‘t likely to derail the risk-on trades, and would actually work in pushing the taper timing further into the future, which would likely result in further stock market and other asset gains. The alternative to taper earlier would force a correction, for which I am afraid there‘s no appetite.

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