Wednesday's Markets Update (Jan 11, 2023)

12 Jan 2023 by rate3

China announcing adjustments to its 'containment' policy, up-tick of the Mortgage Refinance Index (to 326.7, corresponding to mortgage applications increase of 1.2 percent and showing growing borrowers optimism regarding the rate further decline, while 30-year fixed rate fall to 6.42 percent) and rise in crude oil and gasoline stocks (by 18.9M and 4.1M barrels correspondingly, while a decrease was expected) were among Wed's bull rally catalyzers.

NASDAQ went from 10794 to 10931 (+1.3 percent) and BTC - from 17376 to 17550 (+1.0). Volumes were also growing, indicating a possible of further price increase. Indeed, BTC added another 4 percent, crossing 18K during after-hours. At the same time, it is difficult to see how this bull run can be maintain if Thursday's CPI (for Dec) doesn't come out better than expected 5.7 - 5.8 percent (on yearly terms, 6 was November's reading).

Additionally, Department of Labor issues Jobless Claims at Jan 12 which add an additional risk to long positions. Not to mention that, although the Refinance Index increased 5 percent from the previous week, it still stays 86 percent lower than the same week one year ago.