We finished the week on another high note with TSLA shares making a 33% move on the week. In addition, some positive economic news helped the markets. Last quarter GDP was stronger than expected at 2.9% growth (2.6% expected) and the Personal Consumer Expenditure index was 4.4% year over year which showed inflation is slowing. Traders and investors cheered the news with the thought that the Fed may be on track to engineer a “soft-landing”.
Money is continuing to flowing into the riskier growth stocks. This is the fourth week in a row that the tech heavy QQQ finished up. Bitcoin was strong and even Cathy Wood’s ARKK fund preformed well.
My comment from last week deserves repeating “Volatility remains low which is an indication there is no fear of a big sell off coming. Traders shorting the market have been caught off-side and I believe the biggest fear out there right now is that many feel that have already missed a market bottom. Buy the dip mentality remains for now.
Having said that, we have run up a lot so it will be interesting to see the reaction of some of these high-profile stocks reporting this week. Has the good news already been priced in? We shall see.
What to Watch for this Week:
Sectors in Play Last Week:
Earnings this week:
Brian (Randy) Pezim is a Canadian trader and investor, with a focus on swing trading equities as well as day trading.