A little juice for the oversold bounce

S&P 500 ran higher after the opening bell as expected, and UoM data also came in stagflationary as called, yet rolling over to the downside through 5,660s was rejected – and short squeeze had developed, another much awaited daily one (can go on a bit longer in time than that). In terms of sectors, it was a risk-on day, however daily volume was unconvincing even if 90% of stocks advanced. I‘m discussing market breadth and volatility takeways as to where we are in this S&P 500 and Nasdaq bottoming, in the extensive weekend video.

Therein, I also put into context sectoral performance on a weekly basis, talk weekly and daily S&P 500 charts with yields path prospect – more information as always follows in the premium section for clients, but do review the 25min video, it‘s packed with actionable insights.

A couple of tweets for starters – together with yields chart and very tame USD retracement to the upside as rates around the world are rising faster. Little wonder that gold and silver continued surging higher, and midweek I started favoring silver more – lot of catching up to do as it goes on to challenge $35 Oct highs, and I do favor a break higher. Copper also has a great 2025 run, and will be over $5 in no time – plenty of action and positioning for Trading Signals clients (very short-term outlooks issued), regardless of the stagflationary data whiff that led also to 30% recession odds for 2025.

Jittery consumer (expecting inflation which though had been revealed as tame with CPI and PPI readings called out for you as such) means going in cautiously into retail sales announcement, and also retailers with leisure stocks suffering. Not even defensives worked in the week (except for utilities, we know why), which is what I talked about in earlier videos (thanks to high VIX, defensives don‘t work).

Today‘s retail sales and manufacturing data came in as predicted (disappointment), and technical oversold bounce can continue for a while longer – all discussed in today‘s video covering the premarket moves too.