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Carlsquare weekly market letter: Will the pain trade continue?

Read the weekly market letter here:

Carlsquare weekly market letter

  • Last week we highlighted a potential pain trade. The outlook was gloomy, but the stock market was trading higher. That turned out to be a correct prediction. The first step was easy from oversold levels – but can we go higher from here?
  • The week is macro heavy with the Fed decision today and the US monthly jobs report (NFP) on Friday. Both have the potential to impact the trend
  • Although it may not feel like it, the current quarterly earnings season is strong. Perhaps the tech reports can provide an extra boost. After all, 90% of S&P500 tech reports are better than expected! Apple will be a bellwether with its report on Thursday 2 November. From a technical perspective, it has more room to run on the upside than on the downside
  • The chart below shows the US Fed Funds rate, i.e. a forecast based on the bond trading.




The information in this presentation is based on what the publisher, Carlsquare, believes to be reliable sources. However, we cannot guarantee its content. Nothing in the presentation should be construed as a recommendation or solicitation to invest in any financial instrument, option, or the like. Opinions and conclusions expressed in the presentation are for the recipient’s use only. The contents may not be copied, reproduced, quoted, or distributed to anyone else. Carlsquare shall not be liable for any loss arising from any decision taken based on the information contained in this presentation. Past performance should not be taken as an indication of future results. Changes in foreign exchange rates may affect the value, price or income of an investment made abroad or in a foreign currency.

The analysis is not directed at U.S. Persons (as that term is defined in Regulation S under the United States Securities Act and interpreted in the United States Investment Companies Act of 1940), nor may it be distributed to such persons. The analysis is not intended for natural or legal persons where the distribution of the analysis to such persons would involve or entail a risk of violation of Swedish or foreign laws or regulations.

Carlsquare weekly market letter: Will the pain trade continue?