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Friday, January 6, 2023

Market Update 1/6/2023 - Must Fed members continue to spread rumors? Jobs number Friday

Firstly: Alerting to yesterday's update: Time to regroup for 2023 - Gold, China, Tech 

Secondly: The one I call "Bulltard", felt the need to try to influence markets yesterday. Makes me wonder if Fed insiders are still trading treasury markets? 

About James Bullard  

"In 2014, he was named the 7th most influential economist in the world in terms of media influence".

Yep, he sure talks a lot!  


Yesterday's market action: Soon after the open the market pulled back again, and continues to trade in the same sideways range, that it's been trading in for 2+ weeks. Support at the 200 day moving average, so if that level is taken out on a strong employment number, we could see a big sell-off, but that seems highly unlikely. [edit after the jobs number looks like I called that one right. Futures up]

In the News

Gold markets have gotten hammered during the trading session on Thursday, as the US dollar has strengthened quite drastically.

Euro-Zone Inflation’s Sharp Drop Masks Underlying Pressures bloomberg 

If you're trading gold, you're going to want to keep a close eye on currency markets, as I alluded to in yesterday's update. There is support on the $USD at this 103 level 

If you like the $USD; here's an easy way to trade it. Buy the breakout - above the 200 day moving average - on the Bloomberg $USDU (bullish $USD fund). 
$USDU As you can see; it's been consolidating around the 200 day moving average level for a month - in a bullish down-turned wedge.  

Speaking of Bloomberg funds, and stories 

Why would they (gloomberg) continue to ask if every bounce on US tech stocks should be sold, when every bounce in Chinese tech stocks is being bought? Food for thought 


Chinese Stock Alibaba is one to watch, up nearly 100%, off the Oct lows. 

I also heard then report that Tencent is now valued higher than Exxon Mobil - also up nearly 80%? 

$CNYA (China) - good example of a bear market rally, with a little short squeeze, where you see the little breakout. Looks like the golden Euro chart; revealed in yesterday's update

Tencent’s Return to Top 10 Club Shows China Rebound Bets Soaring bloomberg  

Looks like a contrarian indicator to me, or a dog whistle to the short sellers 

The jobs number is out, and it looks like the market is not too concerned... 

If you haven't done do already; Signup for the weekly News Letter, and I'll catch you next week,   

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