Market Notebook

PRICE ACTION:
Equity prices, as measured by ticker SPY, closed the week higher, while bond prices, as measured by ticker BND, fell sharply.

TECHNICAL ANALYSIS:
From a technical analysis standpoint, equity prices remained in an upward trend. Regarding bond prices, BND closed the week below the 20-day exponential moving average, suggesting bond prices could be entering consolidation.

ECONOMY AND FUNDAMENTALS:
Perhaps the most interesting data from last week was the jobs report. Roughly two times more jobs were created than expected. Better than expected jobs data suggests that the Federal Reserve will need to continue aggressive interest rate increases to cool the economy.

NEXT WEEK:
It appears that the door remains open for equity and bond purchases during the coming week. Since bond prices pulled back recently, a little extra caution is warranted in bonds. Data or news flow suggesting continued inflationary pressure could easily weigh on bond prices, given last week’s jobs report.

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.