Will the bull trend last?

Wall Street mixed on Tuesday

Only the Dow Jones reported gains yesterday.

The three big indexes have closed the day as follows:

the S&P 500 closed at -0.07%, the Nasdaq ended the trading session at -0.27% and the Dow Jones closed at +0.31%.

Investors sentiment remains bullish as indicated in the graph below:

Sentiment indicator – Fear & Greed Index

The market sentiment is at 63 in the “Greed” mode. 1 Month ago the market sentiment was in “Fear” mode.

Earning season

The most important event of this week is the quarterly earnings reports of the big companies.

This round of earnings is particularly important for the market because if the reports are going to show less than expected earnings then the stock market could fall.

Some of the big tech giants have already announced a layoff so economists are not forecasting a high-earning season.

For the start of 2023, traders and investors are buying stocks, but they are waiting for a confirmation that the bullish trend can last.

For this reason, the next action of the Federal Reserve will be crucial.

The majority of investors are expecting a reduction in the interest rates hike, as shown in the chart below, but any different Fed decision can lead to a big selloff.



FedWatch Tool – FED rates probabilities

98.2% of investors are expecting the FED to increase the interest rates by 0.25% at the next meeting.

The remaining 1.8% are expecting a 0.50% rate increase.

The next FED meeting is on 1 February 2023.

Portfolio Update

I am monitoring the short positions on stocks and ETFs and will act accordingly.

This will allow my portfolio to make a profit if the market drops.

The fundamentals remain bearish, so I am neutral and cautious at the moment, based on the current FED monetary policy.

However, I aim to profit regardless of the market direction.

If you are already copying my portfolio, please keep the copy open.

If you are thinking of copying me, now could be the right time, if you can invest for the long term (years).

Remember to copy the open trades to optimize the copy.

Remember to set the stop loss on the copy at the minimum level, so you don’t get stopped if there is a correction.

Thank you, everyone. Have a nice day!

Steps to follow to copy my portfolio automatically:

1. Create an eToro account here: https://federicamontella.com/go/etoro/

2. Verify your account and make a deposit of at least 200 USD (you can deposit in any currency, like GBP and EUR)

3. Go to my profile page: https://federicamontella.com/go/etoro-passionforprofit/

4. Start the copy (copy open trades and set the lowest stop loss possible, to allow some movement)

5. Enjoy, it’s all automatic. You will make passive income 24/7

Let me know if you have any questions.

 

Federica Montella

eToro Popular Investor

 

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Author: Federica Montella
eToro Popular Investor, food lover and blogger. Stock trader and Popular Investor at eToro. I am on a mission to find the best restaurants and food to eat.