Since my minimum downside target was met on Monday, the response by the bulls appeared to be solid across the major stock market indices, as all of them rallied rather smartly.
Election out of the way. Fed out of the way. Q3 earnings season is mostly over. Not many catalysts for a while. And that’s just the way I like it. Markets need to calm down and digest. Investors’ emotions need to recover. It’s been a whirlwind.
Between the inflation numbers and the FOMC meeting this week, yields on bonds have come down in a large way. The 10-year yield is the long-term benchmark and the most heavily traded. Let’s look at the 10-year while using two different time frames.
As highly anticipated as Nvidia’s earnings were and as huge the following reaction was, Thursday was an even more consequential day in the stock market.
For all the fire and brimstone, the S&P 500 remains just one good day away from new, all-time highs. Santa Claus may not have called and the first five days of the year may have been down, but the bulls continue to hang in there.
On Friday the government released the employment report. The economy grew by 261,000 jobs versus the 205,000 estimated. On the surface that is great news.
