Broad Market Outlook
Maybe the market wasnt as bullish on the first day of the year as it typically is, yet since then the market has shown us that 2023 might be playing a different tune then the one we grew acustom to in 2022.
The SPY broke out of its mini base and has done a great job inching higher towards the 410 key resistance area dragging all the major sectors upward on the ride.
Telecom for example, one of the worst performing sectors last year has traded higher 14 days in a row. In the short term this easy ride most likely should see continuation towards that 410 area but this is not the time to get lazy with your ideas.
The group has done a phenomenal job lately taking the singles and doubles the market has been giving us. This is not the time to start aiming for the fenses when we are putting points up on the scoreboard keeping it simple.
Talking with most people outside Trading Experts, the overall narrative or outlook is the market is in a recession or heading towards one, yet they don't know what a recession is. The market is at lows and stock are crashing, yet they have no idea where the SPY is trading at.
It seems as if most are looking at the weatherman on TV who is wearing a raincoat and holding an umbrella, saying to prepare for showers, yet if they just looked out the window, they'd see the sun is shinning without a cloud in the sky.
As most continue to prepare for the dooms day, we can continue to take advantage of the good weather.
Macro Rotation Outlook