Job market and broadening rally

Monica Kingsley Monicakingsley

Thursday‘s correction could have reached farther, and it was already then that tech outperformed S&P 500 as it didn‘t fall apart before the closing bell the way the 500-strong index did. Friday‘s data significantly boosted Sep no hike odds, yet the intraday trap to shake off weak longs was strong, and path in equities higher far from straightforward.

Breadth broadened and tech was supposed to lead, and to complete the retail trap, it did nott early in the session. Still, the macro turn reasserted itself (Warsh will have no way to be as hawkish as his positions might lead some to assume), and it was possible to profit on that as QQQ came to perform better than SPY on closing basis (illustration thereof, why I was leaning towards Nasdaq that day).

Next week, we‘ll get CPI and PPI, and if these corroborate the „inflation peaked“ theme (paper oil price isn‘t as menacing as physical inventories are), then… anyway, jobs data led to broadening in the rally, with materials, discretionaries and industrials doing well (and dollar of course not standing in the way).

Author

Monica Kingsley

Monicakingsley

Monica Kingsley is a trader and financial analyst serving countless investors and traders since Feb 2020.

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