• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

Consolidation in the markets

by June 1, 2025
by June 1, 2025

While there is still over a month to go before we reach the halfway mark, it has already been an eventful year for financial markets.

President Trump can take credit/blame for a significantly large proportion of this eventfulness.

He has been active on the international stage, having been directly involved in efforts to force a peace deal between Russia and Ukraine, as well as inserting his administration in the ongoing tragedy of the near-East. 

So far, so awful. His team is currently involved in negotiations with Tehran, and most of the world must hope for a better outcome here, and the quashing of Iran’s nuclear ambitions. Mr Trump has also been busy back home.

His tax bill squeaked through the House of Representatives.

The Senate is next, and many are hoping that it will pass, possibly giving the US economy a lift through a mixture of (diluted) tax and spending cuts, despite adding significantly to the national debt. 

Of course, it is President Trump’s tariffs on US imports which have been the market’s chief focus.

The uncertainty caused by tariffs, and the mercurial manner in which they are dished out, has induced terrible conniptions amongst investors.

The tariffs have given the US Federal Reserve the perfect excuse to hold off from further rate cuts (having sliced 100 basis points off the Fed Funds rate over the last four months of 2024) while providing cover for Moody’s to cut the US’s credit rating.

Moody’s has looked rather exposed ever since Fitch downgraded the US in August 2023, joining S&P who beat them both, and caused much more of a ruckus, when it cut the US back in 2011.

It looks as if several major markets are now at an inflexion point, consolidating after recent moves while offering few clues concerning where they may go next. US stock indices feel as if they want to keep the rally going.

But they have already come a long way off their April lows, following their immediate negative reaction to Trump’s initial tariff announcement on 2nd April. 

As the May month-end approaches, the US majors continue to look overbought, according to their respective daily MACDs.

That could mean that they sell off from here. But their MACDs could also correct through a protracted period of consolidation.

Gold was significantly overbought in mid-April when it hit an all-time high of $3,500.

Since then, the price has pulled back, and the daily MACD has dropped down to more neutral levels. Silver has been stuck in a relatively narrow $1.50 range since mid-April.

Support has held around $32 per ounce, while resistance has capped the upside at $33.50.

Silver’s daily MACD has tracked sideways, again around neutral levels. Gold has made a series of record highs after finally breaking conclusively above $2,000 in early 2024. 

Yet silver remains significantly short of its own all-time high around $50 from April 2011.

Both have the potential for big moves as we push into the summer and beyond. The only problem is working out in which direction.

Crude oil has been in a strong downward trend since it topped out in March 2022 in the aftermath of Russia’s invasion of Ukraine. It also appears to be trapped in a range with its own daily MACD back at neutral levels. Oil has consistently run into resistance on every rally attempt. But for how much longer? 

Hyman Minsky wrote that ‘stability breeds instability’. But sometimes markets need a catalyst to kickstart a big move.

It could be that the trigger is tariff-related. Or it could be one of Donald Rumsfeld’s ‘unknown unknowns’. Whatever it may be, don’t be surprised to see an uptick in volatility in the near-future.

(David Morrison is a Senior Market Analyst at Trade Nation. Views are his own.)

The post Consolidation in the markets appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Adobe stock price is cheap: is it a good buy?
next post
Iridium and Syniverse Partner to Bring Direct-to-Device Satellite Connectivity to Mobile Network Operators Worldwide

Related Posts

Will the ECB rate cut drive the DAX...

June 2, 2025

Why experts say SpaceX is one of the...

June 2, 2025

Wedbush reveals best AI stock picks for the...

June 2, 2025

China’s manufacturing PMI edges up despite ongoing trade...

June 2, 2025

Europe markets open: STOXX 600 dips 0.2% on...

June 2, 2025

‘Bitcoin-style encryption’ for XChat? Musk’s claim sparks debate

June 2, 2025

Why two Wall Street firms remain cautious on...

June 2, 2025

IAG share price forecast as transatlantic demand starts...

June 2, 2025

Trump’s tariff hikes cause steel stocks to fall...

June 2, 2025

What makes Tesla stock better than Waymo for...

June 2, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • The Steep Price of Declining Civility

    June 2, 2025
  • China’s ‘Vanishing’ Data Can’t Hide Its Economic Slowdown

    June 2, 2025
  • Is the ABA’s Accreditation Monopoly Coming to an End?

    June 2, 2025
  • Kinéis launches its services and expands in Asia with WMG Limited

    June 2, 2025
  • The Steep Price of Declining Civility

    June 2, 2025
  • China’s ‘Vanishing’ Data Can’t Hide Its Economic Slowdown

    June 2, 2025

Editors’ Picks

  • 1

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 2

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 5

    Elon Musk says federal employees must fill out productivity reports or resign

    February 23, 2025
  • 6

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 7

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025

Categories

  • Economy (1,316)
  • Editor's Pick (136)
  • Investing (165)
  • Stock (845)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

Weak Q2 guidance drags Intel shares; analysts...

April 26, 2025

‘Bitcoin-style encryption’ for XChat? Musk’s claim sparks...

June 2, 2025

Wall Street ends losing streak as S&P...

March 22, 2025