We are dip buyers over next 9 days until 12/13 FOMC, if there is weakness. But we are in "zone of uncertainty"

Heads up: Due to travel and my 2024 Outlook on Thursday, I will not be publishing First Word or posting a video Tue-Fri.

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We discuss: We discuss how the "up zig" is behind us with Oct PCE on 11/30 and we are likely in for consolidation until Dec 13 FOMC.

Please click below to view our Macro Minute (Duration: 4:28).

The chart in this report is only accessible to members
The chart in this report is only accessible to members

We are in the final weeks of 2023 and historically December is an up month with some form of "Santa Claus" rally dynamic. This year should not be any different, particularly since we expect there to be more than the typical performance chasing and FOMO at work:

Why? Because so many investors in 2023 anchored themselves to a bearish view. One based on sticky inflation leading to a tougher Fed and thus hard landing. We argued against this view all year and as we exit 2023, we see indeed inflation is on a glide path lower. Thus, these investors will be buying the tape as they rethink this dynamic of a better fundamental picture. And the fact the S&P 500 is up 20% YTD. Far better than many expected. But in the next week and a half, until December FOMC 12/13, we believe markets might be consolidating. This is because we are going to see quite a lot of incoming economic data ...
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