Softer PCE numbers, jobs market stay strong heading to 4th quarter of the year. Commodities to recover?
Disclaimer: Nothing I say or post should be considered financial advice. Please do your own due diligence before making any investment decisions.
So PCE and job numbers are more optimistic than market estimates, sending bullish shockwaves to majority of hyperscalers and sectors. However, this does not discount the elevated yields and various macro factors that are still in play.
I anticipate a rotation in funds into defensive sectors such as $Communication Services Select Sector SPDR Fund(XLC)$ $Utilities Select Sector SPDR Fund(XLU)$ $Health Care Select Sector SPDR Fund(XLV)$ from high valuations sectors $Technology Select Sector SPDR Fund(XLK)$ $VanEck Semiconductor ETF(SMH)$ as we head into last quarter of the year as investors rebalance their portfolio, take profit of some of the stocks with elevated forward estimates and park their money in value stocks heading to the new year.
The odds of a rate hike in the upcoming October fed announcement has dissapitated as well, with majority predicting no change in the rate. It is a 360 degree turnaround from just a week ago, whereby the odds were still high for a continuation of rate hike. So is optimism and investor confidence still strong in the hyperscalers keeping their potential to realize it? or is it false optimism? Lets see how this develops as we progress to the end of 2026 and hopefully it ends on a high![Sly]
@PawsAndProfits - Specialist in combining FA and TA for Options selling and Swing trading.[666]
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