Carlsquare weekly market letter: Stock market at a breakpoint with energy and gold in focus

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Carlsquare Weekly Letter 9 Nov 2022

Carlsquare Weekly Letter

• The USD has broken down, as we expected. That gives headroom for the stock market on the upside. Winners are the sectors with energy and raw materials, with oil and gold in the lead
• As repeated every week. We witness a technical rebound in the market that is open to playing. But be aware that it can end abruptly
• It is US-midterm election day today, and CPI (inflation) in the US tomorrow, giving continued high volatility in the stock market. Take the notion of VIX as it may have bottomed out for now (=> still relatively cheap to buy protection)
• The chart below from Elliot Wave also shows that a pivot from Fed – when they stop raising interest rates – often is followed by negative periods for the stock market.                                                                                                                                                                                                                                                                                                                                                                                                     
  

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