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March 31, 2023 – I’m “uber” busy this weekend, so it will be short. Yes, we have an “almost breakout” that started late this week. But keep in might that it was the end of the quarter and volume only picked up the last two days. I say “almost” because we are approaching the previous high on February 2 but have not quite broken above it. (see chart)
Seasonality is a plus over the next 2 weeks and the markets appear to have recovered from the bank scares of last week. The PCE (Personal Consumption Expenditures) data came in basically unchanged so inflation likely remains steady at around 4.6 % annualized. With consumer spending remaining strong the pressure is on the FED to increase rates ¼% next month. But then what? Markets are thinking a pause and then cuts late in the year. Technologies, especially large cap companies, are the strongest in the market right now.
I am starting to re-enter the market; ‘scaling in’ is the watch word right now. I’d sure like to see some follow through or at least stabilizing near these levels before I commit more funds. So far, so good, but recovery will take much longer than people think (or would like). I remain cautious but hopeful.
Have a good week. ……… Tom …….. Price chart by MetaStock; table by www.HighGrowthStock.com. Used with permission.