This week is starting on the backfoot following a very weak close on Thursday with Friday closed for Good Friday.
Bonds selloff is not running out of steam as the 10 Year yield keeps breaking out with 3% a virtual certainty.
Inflation is front and center and although many economists are calling for March numbers to be the cycle top, I am not sure that is helpful if we stay quite elevated for a long-time.
Not much news overnight but China’s economy exceeds expectations, expanding 4.8% in Q1 2022.
Earnings season is at the start and this is a very interesting period where we get to see the implications of supply shocks on profits and sales.
S&P 500 is weak and under 200 SMA, 50 days SMA, and the 21 EMA (down trending). A swing play with some of the components of the SPY would need it to go above the 21 EMA.
Nasdaq is definitely feeling the heat from the rise in rates as well. It makes me wonder if the March low is the only next support. I need to see a close above the 21 EMA at 349 for me to turn short-term bullish.
Technology names were falling as bond yields rose to new heights. $XLK is still in a downtrend – not oversold nor buy signal yet.
ARKK is getting hammered. As mentioned in another post, I might look to buy below 55 for a swing trade.
ARKK could have been much lower but its top holding TSLA is holding much better than most, although it is showing weakness ahead of earnings to be announced on April 20th, 2022
Energy continues to show leadership with $XLE at the top. Not my favorite sector to be playing and I feel it is a crowded trade that can unwind at any moment but which will probably keep extending higher for some time.
Oil stocks are quite strong and a breakout from these resistance levels in the chart would need to happen if you missed the whole move.
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