Last week was a busy week in the financial markets as we saw the Federal Reserve raise interest rates by 1/4 of a point and bad earnings reports from AAPL, META, GOOG, and AMZN. The bad underlying news wasn’t always reflected in the price action of these stocks as META also announced a $50 billion share buyback program and soared, forcing short sellers to scramble. Meanwhile, the US government reported that over 500,000 jobs were created in January, to show us that the US economy remains strong, despite these bad earnings reports. The economy is changing as people are adjusting their spending habits in face of the inflation, but they are still going out and doing things.
Meanwhile, gold rallied big during the week, touching $1975 an ounce, only to dump hard on Thursday and Friday, falling back below $1900. The price of silver moved accordingly. Is this big a top in the precious metals market? You have to realize that gold has rallied almost straight up from $1625 in the past few months without any real pullback at all, so a dip was coming and now sideways action in all markets is likely to play out for the next few weeks.
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