We have had an interesting week this week. The week kicked off with some difficult earnings from Google and AMD. The Fed followed with hawkish comments about interest rates. This led some investors to think that rates might not be touched before May. UPS also followed by an announcement to layoff 12000 jobs.
Earnings then came from Microsoft, Meta and Amazon. The positive news totally unexpected. Especially from Meta stating that they will begin paying investors dividends while also continuing to invest in virtual reality. What might have really propulsed Meta’s stock price is its share buyback plan.
Friday’s job report of a solid 353000 jobs added in January complicates things for Powell to cut rates before the election date. One of the ETFs we follow for treasury (TMF) Direxion Daily 20+ Year Treasury Bull 3X Shares, took a 6% hit. On the other hand, major exchange traded funds that cover the market, increased notably including: Vanguard Mega Cap Growth Index Fund (MGK) and Vanguard S&P 500 Growth Index Fund (VOOG).
So where does this leaves us following an amazing performance by technology stocks this week. QQQ looks to be on the verge of taking another leg up despite overbought on the RSI. Our market timing signals continue to show a buy signal for now.
