Economy: Strong Growth

July 27, 2023, 11:38 am EDT

Strong Growth

2023 Q2 GDP is released today with an outstanding 2.4% growth rate. Combining with earnings reports that presented strong growth across various sectors and industries recently:

  • Mega Technology: META, GOOGL
  • Healthcare: ABBV, ALGN
  • Communication: CMCSA
  • Material: IP, MMM, PKG
  • Semiconductor: AMAT, LRCX
  • Aerospace: BA, TXT
  • Transport: UNP
  • Industrial: GE

This is why Dow Jones almost rallied for a straight 3-week without hesitation. 

Technically, all major indexes are extended at this level. But, there are still many stocks emerging from bases. So, it means that there are still buying opportunities for individual stocks. 

The strategy is to look for a stock that is either near a pivot point of breaking out or pullback from recent breakouts. Avoiding stocks that are already extended from bases can reduce the potential red color for the initial entry. 

The federal fund rate is currently 5.25% to 5.50% which is high but Fed may begin to slow down its rising rate pace. Thus, we still need to pay attention to the inflation data in order to anticipate the cooling process that is already 1-2 years long on inflation pains. 

In summary, the overall picture of the US markets is still bullish. 

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