1/22 Daily Market Note: Continued All-Time Highs. Are we going higher still?
No sign of material weakness, just yet
Note: Thank you to Interactive Brokers for being my partner Brokerage where we get 4.8% Yield on Idle Cash which accrues daily until the Fed cuts rates.
Hi Everyone -
Last week, I had the opportunity to be a guest speaker to an accomplished group of executives in Canada on the state of China’s investing landscape. Special thanks to one of my Members for connecting me with their coveted organization. My core message was that I believe China/Hang Seng’s market is going through a painful shakeout moment, but that stability will find its way back later this year once clarity emerges in the economic outlook. Many executives from the conference expressed continued cautious optimism on their business operations outlook in China, though challenges of course remain. China will bounce when it is ready, but on its own timeline.
Last week in U.S. markets, a positive confluence of optimism from TSM and SMCI’s corporate outlook led the S&P 500, Nasdaq, and Semiconductor Sector SOXX ETF to all time highs.
Since the intraday low made from 1/17 up until last Friday’s rally, I have not spotted any unusual Bearish activity that has had any staying power to drive markets materially lower.
As markets reach new heights, I’ll be on the lookout for signs of exhaustion and buyer fatigue.
In this note, we’ll quickly recap today’s auction based on what I’m seeing with Orderflow and whether there’s reason to be concerned about the market’s new heights as key macro events and corporate earnings come out.