Welcome to January of 2023! And guess what? The Santa Claus Rally marked its attendance! We have learned that not the presence but the absence of this rally impacts the market moves. With that out of the way, it is business as usual on Wall Street.
We live in a world where we receive dollops of information every second. It takes a remarkable determination to steer clear of the noise and focus on the price. While I go by the principle of ‘One day at a time,’ I have to admit that the outside noise finds my hiding place from time to time. After multiple attempts, when I cannot shrug it off, I allow that noise to consume me momentarily and pass through. Then I open my charts again and enable the information to reach me, rather than chasing it with preconceived notions. Technical Analysis aids in putting the spotlight back on the main character – price.
Speaking of price, what has the market been up to?
While on the one hand, the recession chatter gets louder, on the other hand, we have close to 75% of the All Country World Index (ACWI) indices trading above their 40-week average. The US Dollar has paused, correcting to levels of 103-102. But this has finally triggered a rally in the precious metals. Gold and Silver have been doing nothing for too long, but that has changed now. As the market digests all the information that continues to flow in, the fact remains that more stocks are going up than down.
So, what is it that could throw a wrench in this move? The US Dollar, of course! While DXY is currently keeping a low profile, this one variable all by itself has the potential to change the scenery as we go forward. DXY is one chart I’m keeping both my eyes on.
We are getting closer to the 2023 CMT Symposium, and if 2022 were any indication, this year will knock it out of the park! The registration link can be found here. If you haven’t already, check out the speaker list for the event, it is legendary!
Here’s wishing everyone a joyful and profitable 2023, regardless of where the market goes!
Until next time,