To me this week is a time to lie low and watch as we see the changes in Washington. Inflation expectations have been dominating market direction since the November election. Now we are going to see the start of the moment of truth period.
Technically, the stock market appears to be rolling over as the erosion of productivity is eating up all the so called stimulus money, so the market needs productivity to improve. That has been difficult as the Trump administration’s approach to COVID has been to hope its temporary and goes away. Nothing has been more desired than the OLD NORMAL. Well that didn’t happen, we will just have to see what the NEW NORMAL looks like. It will be more about Management than Stimulus.