Trading Insights: Don’t believe the hype! Higher interest rates does not imply lower stock markets
Source TradingView July 7th 2023 6:57 UTC
US Services sector growth beats forecast.
- Yesterday the US ISM Services PMI beat forecast, jumping to a reading of 53.9, while ISM non-manufacturing business activity jumped to 59.2 during June
- ISM readings above 50 indicate expansion
Where are the signals of a pending recession?
What is being observed currently in the US is faster growth in food services, entertainment, and accommodation despite the fact that the US Fed has already hiked rates by 5%!
The US economy appears to have a lot of activity and unemployment at near all time record lows.
Not implying that the risk of a recession is 100% removed, just saying that it would take a major change in the underlying economy to push the economy off a cliff.
Stay cool and enjoy your trading!
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Today’s economic calendar
- The consensus of financial analysts is calling for today's US nonfarm payrolls to print a +225,000 to 250,000 jobs number (the number of jobs created during last month i.e. June 2023)
There is a high chance these analysts will miss the mark since the ADP jobs report released yesterday said that private employers added 497,000 new jobs in June.
Source: TradingView / J. Knobel July 7 2023 6:30 UTC
Trading insights & strategy
Dowjones 30 remains within its multi-month upward sloping price channel
Current price $33,895 Upside prospects for an extension toward $34,702 Downside risk below $33,820 could expose $33,351 support
Not investment advice. Past performance does not guarantee or predict future performance.
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