MBCC TH 23rd January'23 - "Is China really pumping in liquidity? What games are the Fed and Treasury playing games with the S&P 500? $XLE, Coal, Gas and Silver and more..."

Now it’s getting interesting…..

The S&P 500 is trying to test the resolve of the bears (and bulls) as it tries to break > 200 day moving average and the key downward trending resistance line. Now, we know the Fed and the Treasury along with Chinese new year and derivative set ups are playing havoc with prices, and of course investors will pick any narrative to suit the moves. It does not work that way, as one needs a theory, then price follows, not the other way around!

Market has already moved higher into a recovery on back of liquidity picking up and recession being priced in. But what is strange is that this recovery is being led by CYCLICALS, inflation bearing assets, which is not how “recoveries” tend to happen as recession sees a move higher in long duration assets, not cyclicals. So what gives?Well, we tell you why and what the key date and catalyst is. Bear markets can have nasty mini bull runs, but trick is keep your narrative constant, not chase it!

We also discuss EU gas prices, Newcastle Coal prices and this “winter that was supposed to kill the market” and what it means for Euro, Dollar, and potentially Fed cycle.

Also why is XLE 0.00%↑ doing nothing despite Oil higher slowly? We explain that too and what is really driving this equity spread, not the Oil, it is about something much bigger!