[Altos Weekly Traders Edige] Markets Still Shows No Signs of Coming Recession...Details Inside

Roger’s 5 Best Stock Patterns (#2 is shocking) If you want to learn which price patterns to pay extra attention to, make sure you attend the powerful “Pattern Trader” workshop. Roger Scott reveals 5 incredibly accurate patterns and the 2nd one is a shocking discovery. [LEARN THIS TODAY]( By clicking the link above you agree to periodic updates from WealthPress and its partners ([privacy policy]( Markets Still Shows No Signs of Coming Recession Weekly Market Overview The S&P 500, a universally recognized benchmark for the stock market, reached a new peak for 2023 last Friday. While there are numerous issues with the rally, the fact remains that a new high is indeed a new high. Interestingly, a mere 10 stocks, chiefly AI-driven tech mega-caps, account for over 90% of the year's gains, which is a significant win for index fund investors who have benefited from the appreciation. Last Friday saw a crucial development in the market: the rally diversified. Tech stocks lagged while smaller caps, financials, and several cyclical groups outshined. One might wonder if this trend can continue throughout the summer. This largely depends on the economy's performance. While recent economic data has been somewhat mixed, there are no warning signs of an impending recession. It's peculiar that the service sector is expanding at a time when manufacturing indexes signal a looming recession. However, given that the economy is two-thirds service-based, the overall economy is fairing well. Additionally, the Federal Reserve has signaled a halt, which could likely mark the end of the Fed's rate hiking cycle. If inflation experiences a sharp downturn due to the delayed impacts of monetary policies and an overall contraction of the money supply, and we manage to avoid a recession in 2023, Federal Reserve Chair Jerome Powell could redeem his reputation despite his previous policy errors during his tenure. The ongoing contraction in M2 money supply is unprecedented. There has never been a year-over-year contraction since records started in 1959. Now, we're witnessing five consecutive months of shrinkage, with a 4.6% decrease in April, the latest reported month. I am confident that by the end of 2023, inflation will decrease significantly. I would not be surprised if we observe inflation rates of 2%-3% by the end of 2023. Officialdata.org offers inflation data dating back to 1635. The records show periods of 10% to 15% deflation as well as similar inflation spikes. However, these fluctuations eased after 1913, post the creation of the Federal Reserve, which started controlling the growth of the money supply and subsequently, inflation. Based on the severe fluctuations between inflation and deflation before the Federal Reserve's inception, it's likely that we had significant variations in the money supply. We probably experienced a contraction in the money supply during the Great Depression due to numerous bank failures, especially from 1930 to 1932. However, since then, the current contraction in M2 money supply is unparalleled. From a purely technical standpoint, the stock market seems primed for a further 9% surge. We can observe a bottoming formation characterized by a series of rising lows and slightly rising highs. The difference between the highs of February 2023 and the lows of March 2023 is approximately 400 SPX points. As we have surpassed the February highs, a measured move of around +400 SPX points or close to 4600 could be anticipated by the year's end. A larger move could occur between the neckline near 4200 and the October 2022 lows near 3600, which is about 600 points. This puts the S&P 500's rally target around 4800. The targets of 4600 or the more ambitious 4800 are only feasible if we dodge a recession, the rally diversifies, the Fed halts its actions, and inflation significantly reduces by the end of 2023, which would give the market a cause to celebrate. While there are numerous concerns, viewing the situation purely from a technical standpoint suggests that the glass is half full. Sponsored [Discover a Recession-Proof Company for Your Portfolio]( We have identified a recession-proof company that has tremendous potential for growth in the coming years. Our research team has given them our highest score as a solid addition to any portfolio.[Go HERE to see the Potential Investing Opportunity]( By clicking this link you are subscribing to The Stock Market Monster Newsletter and may receive up to 2 additional free bonus subscriptions. Unsubscribing is easy [Privacy Policy/Disclosures]( "Excellent, Excellent, Excellent! I've dabbled in the markets for over 20yrs. 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Trading securities and options involves risk. Prior to buying or selling an option, an investor must receive a copy of Characteristics and Risks of Standardized Options. Investors need a broker to trade securities and options, and must meet suitability requirements. Past results are not necessarily indicative of future performance. Performance figures are based on actual recommendations. Due to the time critical nature of trading, brokerage fees, and the activity of other subscribers, there is no guarantee that subscribers will mirror the performance of the service. Performance numbers shown are based on trades subscribers could enter based on the trade alerts. Altos Trading, LLC assumes no responsibility for any losses incurred by any individual or entity as a result of trade alerts or strategies taught through courses or coaching services. 7154 W State Street Suite 169 Boise Idaho 83714 USA [Unsubscribe]( | [Change Subscriber Options](