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Monday, January 23, 2023

Market Update Monday, 1/23/23 - Taking a look at Global Equities and the $GDOW

 Good Monday morning, Traders!  

If you caught this weeks news letter - sent out on Saturday - then you know what to watch over the next couple weeks. If you aren't receiving the News Letter - in your in box - then be sure to check your spam folder. 

One important thing I left out of this weeks News Letter, is the fact that we saw Friday's rally, take shape, when I noticed that financials - and several other sectors - had been jacked back above the 50 day moving average, as seen below. 

$IYF (Financials) Friday's opening bid raised above the 50 day moving average - triggered program buying. 


This morning, I'm seeing market futures swing from red to green, with Bloomberg News going out of their way to show the NASDAQ 100 (futures), still in the red. They're also focused on Apple (down), which tells me the controllers, who are working behind the scenes, are still pushing the bearish tech (sector) narrative. 

Look: Big Tech is not the only sector, which needs to correct 

Furthermore: There are sectors contained in the NASDAQ with are way overdue for a sustainable rally.

Airline stocks - now trading back above the 200 day moving average. 

$XAL (airlines) trading back above the 200 day. I'm not advocating a trade here, just using this chart as an example, of how bifurcated the market is. 

Related Story: Here’s Why Airline Stocks Are Soaring Right Now

Seems the market is quite illiquid, if only the most thinly traded markets are the ones that are leading. 

Energy led a stealth rally in 2022, and Airlines, Emerging markets (including China), and miners are going to lead in 2023? 

Did you know that Emerging markets only make up 13% of global equity market capitalization? Source MSCI  

I was hoping we weren't going to be left playing wack-a-mole, again this year, but that's exactly how things are turning out, so far...  

Looking at a possible crash 

I spent some extra time charting on Friday and what I found is that the rest of World (ROW) has rallied to a key Fibonacci retracement. 

$GDOW - looks like the ROW is ready to take the next leg down, and the trolls are a contrarian indicator. 

Think I'll add this chart to the public charts area this morning, and continue to sound the warning. 

I may reveal another sector I see on the brink of collapse in coming days/ weeks, so be sure to subscribe to the News Letter! 

Take Care, 


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