Edition #16-Monday January 23rd 2023
Quiz Question of the Week ❓
Answers at the bottom!
This Week in History 📰
24th January- 1984 – Apple Computer Inc. unveils its revolutionary Macintosh personal computer.
26th January- 1954 Groundbreaking begins on Disneyland in California.
28th January- 1956 – Elvis Presley makes his first TV appearance
Summary 📝
2023’s strong start continues as the sectors which suffered most in 2022 started to turn around.
Investors began to see light at the end of the tunnel as the bond market suggested the Fed will likely be less aggressive with hiking interest rates than previously feared.
We are entering the choppy part of earnings season as the mega-cap tech companies begin to report, starting with Netflix last week, moving into Microsoft and Tesla this week. Expectations of the numbers reported are fairly low, since we all know how things have been in the economy, but forward guidance is going to be crucial.
If further disappointment is forecast, and CEOs are seen to be tightening their belt, then we might be in for another leg down in the market, but if positivity is seen, then we could start to see the start of a longer rally.
It’s worth noting that the market has never bottomed before a recession is declared, but with so much forecasting and so many clear signs of a reversal in the economy, this might be the exception to the rule.
As always, stick to your strategy, balance your risk, and take all the opportunities you can to learn and earn!
Major Events This Week 🔬
Monday-
Tuesday-
S&P Global Composite PMI (Jan)
Richmond Fed Manufacturing Index (Jan)
Wednesday-
Thursday-
U.S. GDP Growth Rate - Advance Estimative (Q4 2022)
Durable Goods Orders (Dec)
Retail Inventories (Dec)
Friday
Personal Income and Spending (Dec)
Personal Consumption Expenditures (PCE) Price Index (Dec)
Michigan Consumer Sentiment Index - Final Reading (Jan)
Incoming Earnings Reports This Week
Provided by Earnings Whispers.
Market Recap 📈
Provided by Unusual Whales Futures
Post of the Week 💌
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What’s Moving Markets? 🏃♂️
CNBC- Bitcoin’s 2023 rally gathers steam as cryptocurrency briefly tops $23,000
The price of the No. 1 token briefly topped $23,000 for the first time since Aug. 19, 2022, according to data from CoinGecko.
Bitcoin has kicked off 2023 on a positive note, with investors hoping for a reversal in the monetary tightening that spooked market players last year.
Bitcoin is “increasingly looking like it has put in its bottom,” according to Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno.
CNBC -Apple wants to manufacture 25% of its iPhones in India, minister says
Apple is targeting manufacturing 25% of all of its iPhones in India, Piyush Goyal, the country’s commerce and industry minister said, up from between 5%-7% currently.
Last year, Apple began assembling its flagship iPhone 14 in India. It was the first time Apple produced its latest model in India so close to its launch.
Apple has been looking to diversify production away from China, where it currently makes the bulk of its iPhones, after a Covid outbreak at its main assembly plant exposed fragilities in its supply chain.
CNBC- Treasury yields inch higher as investors assess monetary policy outlook
U.S. Treasury yields rose slightly Monday as investors mulled the Federal Reserve’s next interest rate decision and considered the outlook for the broader economy.
The on the benchmark 10-year Treasury was up by about 5 basis points at 3.532%. The 2-year Treasury yield traded about 3 basis points higher to 4.21%.
Chart of the Week 📈
Uncertainty continues to be the word as we approach some critical levels in the downward trend we’ve been in since the start of 2022.
In addition to the downward trend, we also see the S&P fighting to break through the massive 4000 level, and the 200 day moving average.
By breaking through these levels, we might start to see money rolling back in from the side-lines as cautious investors try to fire up their portfolios again after a year in the wilderness.
However, being at this level during one of the most difficult earnings seasons to call in years could easily mean we run into a hard ceiling. If one of the big companies disappoint with numbers or forward guidance, then we could very easily start dropping back towards the lows we experienced in October.
Investor’s Toolkit ⚒️
Unusual Whales- Options Flow and Analysis
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Disclosure
✅
This newsletter provides general information only. Before making any financial or investment decisions, please consult a financial planner to take into account your personal investment objectives, financial situation and individual needs.
Quiz Question of the Week- Answer
Answer A- 10%
About 10% of US households hold international equity.