The markets have been choppy this week and under pressure as the end of the month and quarter triggered some action. The US Bond market (namely the shorter term 10-year bond) is what I expect will dictate the coming action and what has made traders concerned recently. Yields have been going up (bond prices down) as traders look to a ‘higher cost of debt’ future. The NASDAQ will come under fire if traders expect the Fed tapering timeline is tightening but with recent unemployment data in the US ticking higher, the Fed has reason to pause. The Fed head honchos remain concerned over resilient inflation, but for now, they will not want trigger a major stock market selloff by tapering too early especially if their ‘full employment’ mandate is not yet met.
In the video below, I look at my key markets to watch, what I am watching for and how I expect to see the action unfold.
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