Recovery Rally on the Way? with Nick Santiago 9-28-22 #428

Source:
https://www.spreaker.com/user/appeal2/nick-428

1. Markets are testing the June lows. Yesterday, the S&P 500 index breached the June lows briefly and then bounced back above the June bottom by the close. These markets are very oversold so a short term bounce is due at some point soon. The bigger trend is down though so be careful if you are trying to bottom fish here.

2. The Bank of England (BOE) said it would temporarily purchase long-dated UK government bonds in an effort to stabilize the plunging British pound. The currency market has gone crazy as the US dollar just keeps gaining strength against everything but the Russian Ruble. Europe is a mess and that includes the UK. 

3. Today, bond yields are retreating in the 2-year note and also the 10-year note. This should help markets temporarily, but yields on the 2 year are still around 4.15%. Remember, that is where the fed funds rate needs to go, so the Fed is still behind the curve. 

4. Apple (AAPL) was getting pounded today trading lower by 3% to $147.00 a share. Bloomberg reported that Apple Inc is scrapping its plan to increase production of the iPhone14 from its original forecast of 90 million units due to weaker demand. Apple Inc is a mega cap so it carries a lot of weight in the major indexes and can be viewed as a major sentiment component. Demand just isn’t there for the iPhone 14.

5. Gold is shining today as people realize they will eventually want to own a hard asset. Gold's day is coming soon. 

6. Bitcoin is slightly under pressure today trading around 18,900. Remember, this is in a major down-trend and will eventually go to 13,000.