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03.14.2023 – TUESDAY MARKET OUTLOOK

Market Outlook
 

All is good…
Inflation went down well, sort of. It went up but at the slowest pace since January 2021…
The government bailed out the crumbling banks…
People got pissed off that the irresponsible managers got away with it again…
The FED may actually start cutting the rates now…
And the pastures are green again…
Until the recession hits us at full speed and strength. Why would it hit us? Because in all cases in the entire 100-year history of the stock market, when the FED starts cutting rates, inflation comes in the next 6 to 18 months… Unless “this time is different.” Which it usually is not.

 
Market Outlook
 

After some volatility, the markets finished up by a significant number erasing Friday’s losses. But overall, we still have a lot of work to repair the damage the crumbling banking did to the market. There is no sign of change from bearish to bullish in the Ichimoku chart as of yet.

 
Market Outlook
 

The daily Ichimoku chart is helplessly bearish with no hope on the horizon. The proverbial light at the end of the tunnel is just another freight train speeding toward us. It is time to become defensive. The weekly chart doesn’t offer much hope, either. It is still bearish, and the market has a hard time breaching the cloud.

 
Market Outlook
 

And the same can be said about the weekly Ichimoku chart – no improvement.

Tomorrow’s prediction is a choppy market, but since the FED appears to be done with hiking the rates, at least for now, and the inflation is down, the market may gain more momentum and recover the losses from last week. Today, the prediction was false, and I have reasons to think that tomorrow’s prediction will be wrong too, and we will see another strong up day.

 
Market Outlook
 

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