Buy the Rumour, Sell the Fact, 28th May 2023

🖼 Daily Technical Picture 📈

➤ Traders hate weekends and public holidays, probably more so than losing trades.

➤ Equities were up strongly on Friday. I find it curious that with such strong bullish passion it failed to close above the recent high. I might be wrong, but it looks like a classic set-up: Buy the Rumour, Sell the Fact. The rumour is that the debt ceiling shenigans will be resolved...it is now a fact, at least "in principle" with a final vote in Congress.

➤ Clearly with that expectation and resolution, everything is in my opinon already "priced in". Could there be a surprise that falls short of a successful vote? This would be unlikely given the confident signaling. Otherwise, it would create utter chaos in the short-term.

➤ Conclusion: 🐆 Sell in June and go away?

EQUITY TREND:

⦿ Short-term (weeks) - UP
⦿ Medium-term (< 6 months) - UP
⦿ Long-term (>6 months) - DOWN