Market Report May 28 2023

The upcoming release of Non-farm payrolls (NFP) data this week may be influenced by the shortened trading week due to holidays in the UK and US, impacting the foreign exchange (FX) market and US stocks.

There is a growing concern regarding inflation, as it has surpassed the Federal Reserve's preferred gauge with a 4.4% increase compared to the previous year, potentially leading to a rate hike.

Germany has officially entered a recession, and there are indications that France may face a credit rating cut by S&P, which raises apprehensions about the overall state of the European economy.

AI tokens, a fusion of AI technology and cryptocurrency, have gained attention and are increasingly available for trading, although they are not the primary focus of the speaker's trading activities.

Ford has established a partnership with Tesla to facilitate the charging of their electric vehicles, a move that could potentially encourage other manufacturers to follow suit, thereby benefiting Tesla's charging stations and revenue.

The NASDAQ and technology stocks have exhibited notable strength this year, with companies like Nvidia and AMD driving the market upwards.

While the S&P 500 has shown relative stability, the NASDAQ has experienced significant gains, indicating a lack of broad-based market strength.

Recent developments have shown that micro-cap stocks have demonstrated resilience, presenting potential opportunities for swing trades.

Based on historical patterns, June may not be as favourable for the market compared to previous months.

Volatility levels have been mixed, with specific sectors experiencing greater volatility while others have remained relatively stable.

The low levels of the VIX indicate a lack of volatility in the market.

The yield curve has deepened its inversion, suggesting the possibility of a recession, although the market has already incorporated this information.

Technology has emerged as the top-performing sector year-to-date, while energy has lagged behind.

Regarding currency trading, the dollar index indicates potential weakness, while the euro and pound may strengthen depending on specific price levels.

Overall, the market has displayed particular areas of strength, particularly in the technology sector, while other sectors and regions face various challenges.

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