Thursday's Markets Update (Dec 29, 2022)

30 Dec 2022 by rate3

At Thursday's markets we saw a meager attempt on the Santa Clause rally. NASDAQ opened with the gap at 10321 and then gained 1.5 percent rising to 10478 during the day (+2.6 total). As the EOY gift Tesla received about +7 percent, Netflix landed +5, Meta also grabbed +5 and Amazon snatched +3.

It's tough to tell why such a sudden enthusiasm might have been inspired by the Department of Labor's reporting initial jobless claims rising to 225K (with 220K projected). FOMC's acknowledgment of the upcoming recession was already priced in. Otherwise, with all those red-inked financial statements, plankton-firings (only Meta slushed 10K jobs) and the upcoming Warren-spirited regulations, Big Tech has not much to look forward to in 2023.

Most likely, this 'rally' was started by the trading systems reacting on the oversold signals (~10250 is the monthly low). Then this momentum was carried on by fledgling day-traders. Plus, some funds have already started their portfolio's end-of-the-year re-balancing. BTC, unabated by this sudden commotion, was still flowing between 16500 - 16700 yardsticks. Obviously, no one wants to re-balance BTC :)