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Hanging onto Every Word!
Issue #18
Hi There! March is the month of whipsaws in the stock market. Historically, this is the time when investors get all optimistic about the upcoming year. But, be warned, things could get a bit crazy with reports on GDP, inflation, and employment data being released. So, tread lightly.
Let's dig in!
Last week, the markets continued to hang onto every spoken and unspoken word from the Federal Reserve policymakers. Growth stocks staged a nice rally at the end of the week, causing the DOW to snap a four-week losing streak. The Nasdaq led with a 2% gain, the DOW closed the week 1.7% higher, and the S&P 500 gained 1.6%.
Other key highlights from last week:
U.S. Crude benchmark gained 4.4% last week in response to record crude exports
Bitcoin (BTC) and Ethereum (ETH) dropped over 5% as markets reacted to Silvergate
Binance among many firms that sought to hire Gary Gensler as an adviser
Bored Ape's Yuga Labs introduced first Bitcoin NFTs, Twelvefold
Argentina's leading digital asset platform, Ripio is joining the Polygon ecosystem
Here's what to expect in the week ahead:
Fed Chair Jerome Powell will appear before the Senate Banking Panel on Tuesday and the House of Representatives on Wednesday. Investors will be hanging onto his every word for clues on interest rate hikes.
The Beige Book, a publication by the Federal Reserve District, will be released on Wednesday and U.S. Non-Farm Payroll will be released on Friday.
The upcoming high-impact global news includes European Central Bank (ECB) President Lagarde Speech, the U.K. Gross Domestic Product (GDP) report, and Interest Rate Decisions from the Reserve Bank of Australia (RBA), the Bank of Canada (BoC), and the Bank of Japan (BoJ).
Fourth-quarter earnings are dwindling. Notable earnings include Dick's Sporting Goods (NYSE: DKS), JD.com (NASDAQ: JD), DocuSign (NASDAQ: DOCU), and Ulta Beauty (NASDAQ: ULTA).
Next week's anticipated bias (not financial or investment advice):
Monday (03/06/23) - Warning - Global Events can impact the market
Tuesday (03/07/23) - Bearish
Wednesday (03/08/23) - Expect a down morning
Thursday (03/09/23) - Bullish - watch for political news
Friday (03/10/23) - Volatile Friday
Trading Tip: Bitcoin goes up; US Tech Stocks go up!
February Week 02/26/23 - March 03/04/23 Recap
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Special Tools and Strategies
Have you heard of the terms "Hawkish" and "Dovish" that economists and central bank watchers throw around?
Simple...
The labels "Hawkish" and "Dovish" are monetary policy terms used to describe policymakers and how they steer the economy. Policymakers labelled as "Hawks" take a tougher stance against inflation, while those labelled as "doves" are more focused on risks to the labour market.
This week, be sure to keep your ears open as Fed Chair Jerome Powell and ECB President Christine Lagarde take the stage. Are they Hawks or Doves?
Here is a cheat sheet explaining the difference between hawkish and dovish monetary policies:
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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.