(4/26/22) Markets followed-up Friday's losses by opening down on Monday and re-test lows from February and March, then bounced back up for a half-percent gain on the day. We've seen this kind of reflexive activity before, when markets are trolling along the bottoms...Markets remain over-sold, futures are weaker this morning, with more earnings reports to come today which might set the tone in Tech for tomorrow. Money flows are beginning to turn positive, with follow-through expected over the next few days. For positioning purposes, we're expecting a rally back to the top of the downtrend line--there is still a lot of angst over inflation, economics, and next week's Fed meeting. What the Fed has to say next week will drive the markets for the next month. If the Fed admits inflation has already peaked and deflation is nigh--any type of dovish language--that will help buoy the stock market in the short term. If, however, the Fed leans more hawkishly, with 50-basispoint rate hikes to come in an aggressive fight with inflation, that will dampen stocks. We're not quite "all clear" yet, but there is a short-term tradable opportunity from these over-sold conditions. As we have said before, use any rally to rebalance risk in portfolios. Hosted by RIA Advisors' Chief Investment Strategist, Lance Roberts, CIO Produced by Brent Clanton -------- Get more info & commentary: https://realinvestmentadvice.com/insights/real-investment-daily/ -------- Visit our Site: www.realinvestmentadvice.com Contact Us: 1-855-RIA-PLAN -------- Subscribe to RIA Pro: https://riapro.net/home -------- Connect with us on social: https://twitter.com/RealInvAdvice https://twitter.com/LanceRoberts https://www.facebook.com/RealInvestmentAdvice/ https://www.linkedin.com/in/realinvestmentadvice/ #FederalReserve #InterestRates #QuantitativeTapering #CorporateEarnings #InvestorSentiment #ReflexiveRally #RebalancingRisk #Markets #Money #Investing |
Tags: Featured,newsletter