Strategy Update (2024-05-05)
Market staged a strong bounce of the lows, what could potentially indicate a character change, but for the moment Alpha Signals strategy continues on a red signal.
The market's behavior this past week was characterized by a strong rally as it bounced of the lows.
Initially, the market surged in response to Powell's statement suggesting that the Federal Reserve's next move would probably not involve raising interest rates. Optimistic investors took Powell's stance as "dovish" and Friday we saw a Follow Through Day in the Nasdaq composite which is a positive development.
The market is likely to remain volatile in the near term as investors continue to assess the economic outlook and the path of interest rate hikes.
The earnings season will continue to be a major driver of market sentiment in the coming weeks.
We will continue waiting patiently for a confirmation in character change in the market and remain vigilant for a new green signal, when and if it happens. Stay tuned for further Alpha Signals strategy updates.
