Weekly Briefing 5/22/22 - The Forecast

Weekly Briefing 5/22/22

Weekly Briefing 5/22/22

Despite endless calls for a crash from analysts and traders across Wall Street, we expect a strong rebound to unfold shortly.  The Dow just closed its 8th consecutive week in the red, its longest weekly losing streak in 99 years.  Markets adhere to the laws of nature and such a quick, steep drop is simply not sustainable. Gold Members will be apprised of specific dates, turning points and price levels.  But the big picture remains higher prices coming this year for nearly all risk assets.

From a technical perspective, present conditions are extremely bearish, with all major indexes trading well below their key moving averages.  However, the VIX has yet to make new highs despite the lows reached in equities, signaling a potential upcoming reversal.  These drastically oversold conditions can create the perfect storm for a powerful short-covering rally that sees the market rise 10% in a matter of weeks.  Follow-through Monday and Tuesday should all but confirm this rally.

Past Week’s Economic Data:

Core Retail Sales: Beat

Building Permits: Beat

Initial Jobless Claims: Miss

Philadelphia Fed Manufacturing Index: Miss

Upcoming Economic Data:

Tuesday: New Home Sales

Wednesday: FOMC Meeting Minutes

Thursday: GDP, Initial Jobless Claims