Market Trading Update
On January 3, 2022 the S&P 500 index closed at a record high of 4796.56. Nearly two years later the market is closing in on that milestone with the market closing yesterday just 15 points away. With just two trading days left in the year, a new all-time closing high seems inevitable. The question then become what happens next?
The composite index of retail and institutional sentiment as compared to the volatility index, is at a reading higher than we saw in July when the market peaked. The subsequent correction clipped 10% off the markets. Will this time be different? While high sentiment readings do not necessarily mean the market will correct by 10%, it does suggest that at least a short-term correction to reduce the overbought condition is likely.
With momentum and sentiment firmly intact, there seems little to keep the market from rising for now. However, we will likely see some of the froth come off in January. Source: Lance Roberts
Credit Spreads Hover Near 18-Month Lows
With credit spreads near historic lows and yields still somewhat elevated, there’s a case for adjusting bond exposure to favor treasuries rather than corporate bonds. There’s little to suggest that credit spreads should tighten further than they have over the past ten years, but there’s an argument to make that they are too tight for the current credit environment. Thus, avoiding exposure to changing credit spreads may pay off until some sort of normalization takes place. Source: Lance Roberts
World shares are mixed following slight gains on Wall Street
Global markets have shown a mixed pattern, with European shares opening lower despite significant gains in Asian markets. U.S. futures followed a similar trajectory, with notable performances including Germany's DAX and Paris's CAC 40 both opening 0.1% lower while Britain’s FTSE 100 declined by two points. U.S. markets showed slight gains, the S&P 500 rose 0.1% for the day and is up 24% for the year. The Dow Jones Industrial Average climbed 0.3%, and the Nasdaq Composite rose 0.2%, boasting a 44% surge this year. Investors remain hopeful for the economy to avoid recession, along with the expectation that the Fed may implement rate cuts in the new year. These conclusions are based on recent data as well as the Federal Reserve's consistent policy since its July meeting. Source: KXAN.com
Traders that fueled stock-market rally are now nearly tapped out, Goldman says
2.2mb/d 2024 growth expectations, key to shaping oil market – OPEC
Big rise in gold price
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