The market is showing bullish sentiment despite cautious comments from Federal Reserve officials regarding interest rate cuts.
I’ve been saying I think people are getting way ahead of themselves expecting a rate cut as soon as March.
Meanwhile, the stock market is still bullish, but the bond market indicates belief in rate cuts.
Fed officials have downplayed the likelihood of aggressive rate cuts, contradicting market sentiment, which shows a 68% chance of a 0.25% cut by March, according to the CME FedWatch Tool.
Key reports such as GDP, personal income, housing starts, and earnings from FedEx, Nike, and others will impact market direction this week.
The Industrial, Technology and Consumer Discretionary sectors look strong, while interest rate-sensitive sectors and midcaps are showing signs of cooling off.
I’ll cover all that and more in this morning’s “Premarket Must Watch” video!
In today’s all-new briefing…
I’ll discuss whether or not bonds are ready for a breakdown… the biggest news to pay attention to this week… which sectors are showing signs of selling pressure… how the market is setting itself up for year end… earnings we need to follow closely… and key levels we need to watch carefully!
Roger Scott
Roger Scott Trading
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