Markets tentative - what will Powell say?Yes AZL gained 1 pip to...

Markets tentative - what will Powell say?

Yes AZL gained 1 pip to finish at 7.2c. Our volume was decent, just over 16m shares traded. Another touch of lower zone of 6.8 - is that double bottom (though time was very close to consider that) and are we now ready to move? Lets hope so.

ASX Li stocks had a decent gain, not very high though. Of the 54 stocks that I track, average gain was 2.5%.

Overnight US U stocks also made small gains and average gain was around 1.5%.

What next:

US markets traded in a narrow range with slight decline in SP 500. ASX though was in positive mood and made some gains.

SP 500 has now got back into the level it was trading for around 2 weeks - mid 3900. So yesterday it neither made an attempt to breach 4000 or 3900, instead in mid 3900 - this is the level it was finishing around 8 of 10 days just recently, before making a jump to 4000

Today after sometime it seemed there is some life come back to resource stocks. Although there was no major gains, but that fear was subdued and punters were ready to dip their toes. Hopefully start of something good.

Among analysts there is now two distinct groups - one group, who are slightly in majority feel a big fall is imminent and Powell could be a trigger for that. But many have not given up 4100/4230 on SP 500 at least in this phase. So hard to tell what will happen. For those risk averse, let the price action guide what to do.

Personally I have bought some yesterday and today - some of the shares that I had got out a week or so ago. Its still an indecision state - but thought will get some more into it. Lets see.

So what will happen tonight? Powell to speak tonight - markets may get strong direction from him. He tends to be hawkish and generally does not like market soaring as he feels it will make his task more difficult. Lot of Fed speakers have spoken this week, generally hawkish. Trying to send a message that even if we do a small raise in December, don't take that as victory as we will keep it higher for long. If Powell is even neutral, I feel our rally may continue. Will that happen? Lets hope so. All the best.