FED Day
Feb 01, 2023 12:44 pm
Wednesday, February 1, 2023
Good morning.
Welcome to the first FED day of 2023.
I apologize for not being with you this morning.
I am calling in sick again today.
It's tough to record a video when you can't stop coughing.
Given the current state of my health, I am going back to bed.
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On the surface, January turned out to be a fairly bullish month.
Or was it?
For the Bulls, the US dollar index was down for the fourth month in a row, generating a new monthly sell signal. This has been very bullish for the stock market and gold.
The Russell 2000 closed the month at a new six-month high.
And we watched Semiconductors lead technology stocks higher.
On the TSX, we watched the Energy Sector continue to hold up the Canadian Stock Market.
Not so FAST.
While that was going on.
The DOW 30 and the S&P 500 ended January with an Inside Month.
By itself, this chart pattern is neither bullish nor bearish.
An inside bar is often seen as a sign of indecision or consolidation in the market.
It's what happens next month that counts.
And for the S&P 500, we stopped right on our Daily and Weekly Price Targets.
Okay, that's all for this morning.
FED days are always interesting.
The market has been trading as if inflation is over, the recession is over and the FED has finished its work.
I don't believe any of that is true, but what I believe doesn't really matter.
At your service.
Stephen Whiteside