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Showing posts from September, 2020

Nasdaq Ready for the Yearend Reversal

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September ends and he does his usual job in the markets: being a bearish month, in this case correcting the excessive rise of the SP500 and Nasdaq, artificially driven by the Fed and the FAMAGs. And October may be a key month for the immediate future on Wall Street. Seasonally, that month is known to kick off a year-end strong bullish rally , but now we are in an election year and no surprise should be ruled out. Keep in mind the following fundamental aspects , which will define the bias of the market in this last quarter, prior to making long-term decisions. Smart money, hedge funds, and institutions will do the same this week, prior to the end of the quarter, before proceeding with their usual rebalancing of portfolios. If they do, even more so we, the retailers. 1- The US elections in November, which heat up this week with the first Trump-Biden debate. Wall Street does not trust Biden and his economic program. It now prefers, by far, Trump's victory. And investors are

FOMC could drive Markets this week

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Highlights that will move the stock markets this week: - The Fed meets on Wednesday for the final time before the Nov. 3 presidential election with investors hoping to learn more about its decision to tolerate higher inflation.    The Fed’s decision to tolerate periods of higher inflation effectively means that interest rates will remain lower for longer. Meanwhile, the Bank of England and the Bank of Japan will both hold policy meetings just hours after the Fed on  Thursday . - Markets will also be paying close attention to data on U.S. Retail Sales for August, out on Wednesday , and initial jobless claims figures on Thursday .  The number of new claims for unemployment benefits hovered at elevated levels last week, suggesting the labor market recovery from the COVID-19 pandemic was stalling as government financial aid to businesses and the unemployed dries up. - Last week’s volatility in stocks could continue with a much-awaited fiscal aid package stalled in the