Market Musings 280123: Breakouts multiply
Stock market breakouts multiply
Summary
Recession fears calm, for now
US earnings season is not as awful as one might have expected
S&P 500 finally breaks out of 2022 downtrend
Leading sectors: Semiconductors, Luxury Goods
Watch the CAC-40, FTSE 100 for evidence of new all-time highs
Uranium prices pick up momentum
Podcast: The ChatGPT AI revolution
What is ChatGPT?
What is used for?
How does it work?
Does it have a promising future?
What is its potential impact on the quoted Tech sector?
Recession fears calm, for now
The twin motors of better-than-expected economic momentum and declining inflation rates in the US and Europe have underpinned the continued global stock market recovery in January, aided and abetted by Chinese reopening.
Global stocks continue to move higher
Source: tradingview.com
Earnings season not as bad as feared
Q4 earnings season in the US and Europe is a little bumpy, with some shockingly poor results from household names such as Intel. But in general, earnings for the end of last year have come in better than expected, with a number of strong results in various sectors.
S&P 500 finally follows World ex US stock indices
While European and emerging market stocks have led over the year to date, the closely-watched chart of the S&P 500 finally broke out of a key downtrend resistance line. This suggests more upside potential in the days ahead for US stocks, with even the Nasdaq starting to show signs of life.
S&P 500 equal-weight (blue) and market-cap (green) indices break out of downtrend
Source: tradingview.com
Sectors to watch: Semiconductors
Intel may have had a shocker on the back of weak demand for PCs - understandable after the rush to buy new laptops in response to lockdowns and the need to work from home . But semiconductor leadership can be found in the likes of TSMC, ASML and ST Micro, all of whom are demonstrating strong fundamental trends.
Semiconductors lead Tech out of downtrend
Source: tradingview.com
This comes in spite of evidence that smartphone demand growth is slowing sharply…
