Are the Bulls Making a Comeback For Real?

Hi There! I am from a beautiful island in the Caribbean called Grenada - the Isle of Spice!  This Tuesday, February 7th, 2023, marks our 49th Independence Day Celebration.  Let us continue to aspire, build, and advance as one people.  Hip! Hip! Hip! Hooray!   

Alright, let's dig in!

Last week, the FOMC Announcement showed up and showed out in the markets and brought all the volatility we expected.  U.S. jobs growth surged in January, with nonfarm payrolls increasing by 517,000 jobs (almost three times the estimate).  The unemployment rate was lower than expected at 3.4% (a greater than 53.5-year low).  Despite some pullbacks during the week, the Nasdaq took the lead gaining 3.3%, and the S&P 500 rose 1.6%, leaving the Dow behind with a meager drop of about 0.15%.

Other key highlights from last week:     

• Tech stocks finished a five-week rally - longest since November 2021

• Indian refiners pay traders in dirhams for Russian oil

• CFTC commits to regulating crypto products that are not securities

• Binance Chain developers introduce whitepaper for new Web3 storage network

• Warner Music Group announces Rhythm City experience in Roblox

• Polygon beefs up Layer 2 and gets the edge in NFT Transactions vs Ethereum

Here's what to expect in the week ahead:

Watch out for another 25-bps rate hike by the Reserve Bank of Australia.  So far the Aussie dollar technical analysis look spotless and the currency is expected to break recent highs.  Meanwhile, in Europe, investors will be focusing on President Christine Lagarde's speech, Germany's Inflation Rate release, and the U.K. Gross Domestic Product.  

Across the pond:

Investors and analysts will be listening closely to Fed Chair Jerome Powell speak.  The lingering question remains - will the Fed's aggressive rate hikes drive the already fragile economy into a recession?   Earnings season continues with a tug-of-war within the media - The Walt Disney Company (NYSE: DIS), News Corp (NASDAQ: NWSA), and The New York Times Company (NYSE: NYT).  On the consumer sector side, expect earnings from PepsiCo (NASDAQ: PEP) and Kellogg Company (NYSE: K). 

Next week's anticipated bias (not financial or investment advice):

• Monday (02/06/23) - Easy trading day, buy the dip

• Tuesday (02/07/23) - Expect selling early in the day

• Wednesday (02/08/23) - Bullish

• Thursday (02/09/23) - Do not be the last one out of the market

• Friday (02/10/23) - Unexpected news; take your profits

Trading Tip: Pay attention to Natural Gas (XNG)!

January Week 01/30/23 - February 02/04/23 Recap

Special Tools & Strategy for the Week

"The Trend is Your Friend!"

Before you trade, the first question you should ask yourself is "What's the trend?"

Schedule a Call- Let's chat!

Wanna thank me...Buy me a coffee!

Sign up for our Secret 10-Page Trading Plan!

Join the DCG Elite Mastermind!

Disclaimer: This newsletter is strictly educational.  The information provided in this report does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the report’s content as such.  Please be careful and do your own research.