After getting our put options wrong on XHB and the direction of markets in general, we wanted to get a second opinion so we asked ChatGPTs Financial Wizard where SPY and XHB might be headed. The results are interesting:
The SPDR S&P 500 ETF Trust (SPY) is currently priced at $500.14. Given the recent technical analysis indicators such as the Moving Averages Convergence Divergence (MACD) being at 6.54, and the Relative Strength Index (RSI) at 64.16, it suggests a mixed sentiment. The current position above its 20-Day exponential moving average (EMA) of $490.86 and 50-Day EMA of $478.27 indicates a bullish trend.
Considering these factors, I predict that SPY could potentially see a slight increase in the short term, potentially reaching around $505-$510. This forecast takes into account the current bullish indicators and market trends. However, it’s crucial to remain aware of the broader market conditions and news that could impact the performance of SPY.
source: openai.com
And for XHB:
The current price of the SPDR Series Trust SPDR Homebuilders ETF (XHB) is $99.34. Considering its recent performance and market trends, particularly the 25.83% increase over the past six months and a significant 43.23% rise over the past year, the XHB ETF shows strong momentum in the homebuilding sector. Given the positive trend and the sector’s current dynamics, I predict that the XHB could potentially reach around $102-$104 in the short to medium term.
This forecast is based on the current market conditions and the ETF’s performance trajectory. However, it’s essential to consider the volatile nature of the market and the specific sector influences that could impact the future performance of XHB.
source: openai.com
Interestingly, both CPI and PPI came hot this week giving the Fed no reason to lower interest rates so we would expect a potential correction but ChatGPT doesn’t think so. We’ll keep an eye on SPY and XHB so stay tuned, stay profitable and stay solvent.