The Fed's November 2nd policy meeting was not a surprise in any tangible respect. They raised rates by 0.75% for the fourth time this year, moving interest levels off of the 13-year "sugar high" that has convinced a generation of investors that double-digit stock returns are a birthright, and that leverage was the investor's version of a favorite toy. The further we get into 2022, the more this reality should be setting in for investors. It was not the news the markets wanted to hear, and the potential for a soft landing is getting narrower.
The U.S. election on November 8 will steer some attention away from investors locked in on the Federal Reserve. The consensus expectation is that a divided government between the White House and Congress will lead to more political gridlock and a potential slowdown for some of President Biden's agenda. Historians note the stock market has outperformed with a divided government over the returns generated in the years following the same party controlling the Senate, the House and the Presidency. Analysts warn that a scenario that could rattle the market would be any lack of clarity with regard to Senate control if results are contested. Meanwhile, the economics calendar will be dominated by the October consumer price index report. Earnings will also continue to roll in next week, with Disney (NYSE:DIS), Rivian Automotive (NASDAQ:RIVN), Rolox (RBLX) and Nio (NIO) some of the notable reporters. The earnings season has been lackluster so far in general with only 70% of S&P 500 Index companies posting better-than-expected earnings compared to 85% a year ago and 24% missing EPS estimates vs. 13% a year ago. Outside the U.S., it will be another week of reading the tea leaves in China with Apple (AAPL) supplier Foxconn in the middle of a lockdown region that is slated to run through November 9.
However, we can also see this market from another side of view. From tech side of view, market did his work, and last Thursday might be a very good buy point, and it is even better than we expected last week. IF there's no more worse News coming out week, I would love to participate into the "LONG" side of market, and view last Thrusday's low as a "higher lows", therefore, if this hypothesis is set, then all I need to make comfirm is waiting for a "higher highs" . 3911 might be the area you need to watch out for. Some tech buyers might sell their "temporary long" position before the market reached 3911. Therefore, how the market will deal with area is something I might wanna focus on.
The U.S. election on November 8 will steer some attention away from investors locked in on the Federal Reserve. The consensus expectation is that a divided government between the White House and Congress will lead to more political gridlock and a potential slowdown for some of President Biden's agenda. Historians note the stock market has outperformed with a divided government over the returns generated in the years following the same party controlling the Senate, the House and the Presidency. Analysts warn that a scenario that could rattle the market would be any lack of clarity with regard to Senate control if results are contested. Meanwhile, the economics calendar will be dominated by the October consumer price index report. Earnings will also continue to roll in next week, with Disney (NYSE:DIS), Rivian Automotive (NASDAQ:RIVN), Rolox (RBLX) and Nio (NIO) some of the notable reporters. The earnings season has been lackluster so far in general with only 70% of S&P 500 Index companies posting better-than-expected earnings compared to 85% a year ago and 24% missing EPS estimates vs. 13% a year ago. Outside the U.S., it will be another week of reading the tea leaves in China with Apple (AAPL) supplier Foxconn in the middle of a lockdown region that is slated to run through November 9.
However, we can also see this market from another side of view. From tech side of view, market did his work, and last Thursday might be a very good buy point, and it is even better than we expected last week. IF there's no more worse News coming out week, I would love to participate into the "LONG" side of market, and view last Thrusday's low as a "higher lows", therefore, if this hypothesis is set, then all I need to make comfirm is waiting for a "higher highs" . 3911 might be the area you need to watch out for. Some tech buyers might sell their "temporary long" position before the market reached 3911. Therefore, how the market will deal with area is something I might wanna focus on.