Choppy Waters Ahead: A Brief Market Update

October 23, 2023 Update

Very quick update this week.

As you can see above, the equal-weight Sp500 is breaking below the consolidation area I have been highlighting for months now. The look is not good. We either bounce up from here or… more pain will come.

Looking around there is little to be optimistic about over the short term.

The 10-year treasury yield keeps grinding higher. I personally expect to come to an end relatively soon, but that moment has yet to come:

Oil prices are not exploding but the trend is UP right now. Another negative that will keep inflation stickier and so long-term interest rates.

All cyclical sectors like Industrials and Consumer discretionary are suffering. Also, financials are suffering while Technology is struggling. Not a good overall look as this is a sign of pessimism in the markets and an anticipation of a recession to materialize in the near future. That’s what Mr. Market is thinking.

I am not buying anything this week, waiting for a better environment.

I will post again this week to share about my portfolios.

Let’s see what the market does this week.

All the best.

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Important: This is not investment advice. Consult a licensed financial advisor before making any investment decision.