The upswing in stock prices continued for a fourth week in-a-row. This despite a mild sell-off on Friday’s employment report.
The report was “surprisingly better” than expected, which was initially perceived by investors as bad news – because they fear the Fed will see this as a sign of an over-heating economy and thus continue to raise rates to combat more anticipated inflation. However, a deep dive on the report details revealed the large gain was mostly part-time jobs and second jobs – not exactly a sign of a robust economy in need of more rate increases. That detail may possibly be why the market recovered some of its decline later in the day.
Corporate earnings reports also continued to buoy buying interest by investors, as they remained largely “less bad than expected”.
At this point most of our stocks have reversed to long positions, many within the past 5 weeks, the optimum time to lock in large short gains and earn some extremely large long gains unusually quickly. Credit is due our objective analytics, which provide us key “buy low” signals – often when they are unexpected, as in Mar 2020 at the height of COVID panic, which led to very large upside gains.
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