Market Notebook

PRICE ACTION:
Equity prices, as measured by ticker SPY, and bond prices, as measured by ticker BND, closed lower on the week.

TECHNICAL ANALYSIS:
SPY appears to remain in an upward trend, while BND price seems to have ceased an upward trend and entered consolidation.

SENTIMENT:
Doubt appears to have seeped into market participant thinking last week. Data continues to accrue, suggesting corporations will find it difficult to maintain margins in the coming months. Like Fox Mulder, market participants “want to believe” that all is well. The reality, in the form of economic data, is pushing back on that belief a little.

ECONOMY AND FUNDAMENTALS:
Economic indicators within the Market Notebook remain mixed. Real economic activity will likely slow over the next few months as the Federal Reserve continues to act to contain inflationary pressures.

NEXT WEEK:
Bonds appear to be struggling on a technical basis, and prices could continue to struggle during the coming week. The picture regarding equities is mixed.

Since bonds closed the week well below the 20-day exponential moving average, it seems prudent to avoid bond purchases unless necessary.

All the best during the week ahead!

Disclaimer: Nothing in this discussion should be considered investment advice. The content of this discussion is strictly my personal opinion and subject to change at a moment’s notice. Investment advice can only be provided to you by your investment professional and not by a general market discussion such as this one. If you wish to speak with an investment advisor, contact us. We can probably help.