is this the Start of the correction?

This was the first red week in 6 weeks where all indces ended in red. Also the first week where the marked didn’t follow NVIDIA. NVIDIA delivered earnings on 22. May and just beat the expectations. Expected 24,6 billion usd, actual 26 billion usd. What most people don’t know is that in whispering number, big boys expected 30 billion usd. So retail thinks the numbers was good, big boys was a little dissapointed.

The ratecurve is also inverted, which means the short rates is higher than the longer rates. This means that investors have little belief in the future and goes out of risky assets like stocks and crypto, and goes into safe bonds. This is a sign for recession. But nobody is talking about that.

CPI in Europe showed 2.6%, higher then expected. I do think the rates will be cut allthough inflation went higher. The economy in Europe is too shit for rates to be held higher for longer. Too many people will loose their job. PCE number, Feds favourite inflation number went lower then expected m/m. But the inflation is still too high. If they lower the rate, they will have to bring it up again. I don’t know what the Fed will do next, we all know Powell playes this politically. This is an election year, and Powell is a democrate, and he wants to keep the market high and the rates low. I think more and more people see through this, because he promised 7 rate cuts during 2024, and in june we have had 0.

Both American shares and Salesforce missed on earnings and dropped over 15% this week. Funny how most companies loses money. Remindes me of that S&P 500 have had 31% increase since 2022, but 493 companies have stayed same or lowered, and only 7 companies (magnificent 7) have gone higher. Roughly speaking. That and commodities and rates. Another interesting fact I heard on bloomberg is that the average 30 year mortgage is up to 7%. Strange when Powell said 7 rate cuts. Luckily I think the correction have started. The start date was 23. May after NVIDIA earnings. And a correction is a good thing. It is healthy for the economy with a correction some times. People forget that.

Best Regards

CEO J.E.V