Daily Alert – Tuesday 26th April 2022: Equities rise but there are headwinds

Mark NugentApril 2022, Daily Alert

Daily Alert – Tuesday 26th April 2022: Equities rise but there are headwinds

Good morning.

Please note – Live bi-weekly Q&A webinars restart this Wednesday at 7pm UK-time, link below.

Yesterday, equities mounted a modest reversal against the bearishness seen at the end of last week. However, there are headwinds. The Fed are now expected to raise interest rates by 50bp, 75bp, 50bp and 25bp over the next four meetings. This is the “front loading” that Fed Chair Powell spoke of last Thursday. This expectation is bad for equities and is driving up US 10-Year yields and the USD.

Still, I went long on the S&P500. I looked at the Japan225, but the JPY was not playing the risk-on game and was strengthening.

Today is quiet from a calendar perspective.

It’s a big week this week for Q1 earnings from US corporates. As we trade equity indices, individual company earnings are not so important, but we are tuned into any overall sense of the business environment coming from the results, e.g., earnings being at the bottom of ranges, or something similar.

I will restart bi-weekly Live Q&A webinars this Wednesday at 7pm UK-time. You can register HERE. If you can, please send in your questions beforehand. Otherwise, see you there.

VIP Club members can see today’s video, all brief trading videos, the Monthly and YTD Performance videos, the Trading Video Course and download the MTM Indicators software HERE