From the desk of Vance Howard:
Chart: QQQ 1-year daily
The Fed raised the rate by 25 bps last week, and in our opinion they are most likely done. If they had not raised rates, there would have been a big question as to how bad the bank issue is/was. As we said before, we think the Fed is done raising rates. Banks have pulled back from lending which will slow things down, and we believe the possibility of a soft landing, or no recession is looking promising.
The markets are in a clear uptrend, and pullbacks are buyable. The markets are still very shaky, as investors are on edge after 2022, and this is understandable. The QQQs, which is an ETF that tracks the NASDAQ 100, has just peaked its head above the $322 mark. This is a pivot point, and any real break above that level would indicate a new breakout to the upside with a target of $380, which would be a very strong move.
Money market shares show that assets were again higher among the largest U.S. money market fund complex in April. Money market fund assets jumped $56 billion, or 1.1%, last month to a record $5.685 trillion, and yes, that’s correct – trillion. Total MMF assets increased by $707.2 billion, or 14.0%, over the last 12 months. What does the massive amount of cash on the sidelines mean? It is the fuel for the next bull market, and it could go on for a long time.
Chart: KRE 1-year daily
This communication is issued by Howard Capital Management, Inc. It is for informational purposes and is not an official confirmation of terms. It is not guaranteed as to accuracy, nor is it a complete statement of the financial products or markets referred to. Opinions expressed are subject to change without notice. Howard Capital Management, Inc. may maintain long or short positions in the financial instruments referred to and may transact in them as principal or agent. Unless stated specifically otherwise, this is not a recommendation, offer or solicitation to buy or sell and any prices or quotations contained herein are indicative only. To the extent permitted by law, Howard Capital Management, Inc. does not accept any liability arising from the use of this communication. Howard Capital Management is an SEC-registered investment advisor which only does business where it is properly registered or is otherwise exempt from registration. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the advisor has attained a particular level of skill or ability. Past performance is no guarantee of future results.HCM-022223-WW05 (02/2023)