US stock market has made a U turn and has hit new all time highs in DOW & S&P 500....
Nasdaq almost 300 points away from making new all time high..
Almost 8% move UP from lows in 3 weeks is pretty convincing that may be direction is still UP, but may need some digestion time....too fast too soon never last too long....
This weeks earnings may decide short term direction, IF there is a pullback in Nasdaq, it may go to its support area which is not too far current level.
SNAP gave a shocker by saying cannot meet too lofty goal of Sales in near term, a nice problem to have as reasons given were external issues. AAPL induced for which solution is on the way plus supply chain issues which the whole world is facing which will take time.
Inflation remains @ sky high level, check your full tank of gasoline cost vs last year...30% jump in a year in a 2% inflation world?
All commodities are near 7 year high....
Heating cost this winter as Natural gas is @ multi year high will bite pocket book badly for many months starting now...
Food inflation is hurting all and will be reflected in higher menu items already happening @ CMG plus others...
A small hope is that canned items in food is lower.....
Then there is near term prospect of Interest rates ticking UP... which affects everyone from Credit Cards to Mortgage cost to overall inflation....
BUT not all is lost....
Air fares & other fares are going UP which should balance out their cost....
Reopen stocks are gearing UP for full operation for Christmas
Thanksgiving may give boost to US economy in a big way.....
Semiconductors are being touted as attractive area to invest....NVDA AMD could be beneficiary
Casino & Gaming stocks are looking good from Macau to Las Vegas as business is picking UP
Crypto currencies have entered a new boom with many ETF & Futures contracts being traded, expect more record highs until $100K for bitcoin, Ethereum Coin all looking good
YES technology stocks should make new highs with Nasdaq in focus with QQQ
All in all US stock market is earnings dependent in near term but direction is UP.
Good luck with your own analysis & comfort level.
BLOG does NOT give buy or sell.
Saleem
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