Goldman Trader: "Sell Strength On Any Move Back Toward The August Highs Of 4300"

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by Tyler Durden
Sunday, Jan 22, 2023 - 01:00 AM

By Tony Pasquariello, head of hedge fund coverage at Goldman Sachs

While not without some uneven price action, the new year has brought a broadly positive tone across the markets. For the bulls, the central market narrative that has emerged is quite simple: inflation down, employment fine, policy makers in control. If anything, that reduction understates some of the strikingly cheery views I heard coming into this week, ranging from “this is what the perfect soft landing looks like” to “see, it was transitory all along” to -- ahem -- “we’re witnessing an economic miracle.”

I may not agree with all of that -- and, would argue one should be wary of a traditional interpretation of things when we’re still dealing with the oddities of a post-pandemic global economy -- while acknowledging the interplay between inflation and the labor market looks remarkably good at this stage of the game.