Rolling Bubbles

As we outlined early this year, market players were intent on pushing the “Buildup to Normal” story in the new year.

I have to admit that I totally misread how much of a pile on we would see.

First we saw the raid on the dollar, kind of a negative Bubble that ironically was pricked on the day of the Capitol Insurrection, January 6th.

Then between February 8th and yesterday, the 25th, a series of Bubbles peaked in the following order.

XLY Discretionary stocks on February 8th..

RUT Russell 2000 stocks on February 9th..

SPX S&P 500 on February 12th..

MCHI China, and EEM emerging markets on February 17th..

DJI , CRB commodities, and XLF Financials on February 24th

OIL, and 10 and 30 year interest rates, yesterday February 25th.

Next we may see some bounces prior to the 50 day moving averages turning down and things get ugly.