It is Messy at the Top
Many of the stock indexes that we follow topped on May 10. And in our May 13 Post we outlined the 31 day roll over period. That pattern is still in play.
It is becoming more and more apparent that the FED mandate on employment doesn’t work on may levels. The only thing that will work is retraining workers and getting them involved in the outgrowth of an Infrastructure. That effort is still pending in Congress. It should have started a year ago, but Trump was President and he did not want to acknowledge COVID or that the Service Industry as we knew it was dead. We are still living in the aftermath of his stupidity. Some 30 percent of the population is pushing back on COVID vaccinations. With that thread it will be difficult if not possible to bring back the Service industry to its full strength. Like I am not going to restaurants or stores that do not have a required full vaccination policy.
So the Tipping Point is building. As the whole market rolls over we are seeing all kinds of alternatives being tried, stuff like Bitcoin, Meme stocks, Epicenter stocks, Main Street Retail Stocks, Leisure and Entertainment stocks, Infrastructure Stocks, Fang Wanabee technology Stocks, and futuristic ARK stocks.
Consequently we are keeping a Tipping Point index, this is an arithmetic index (so that no one of the basic or alternative indexes is over weighted) of all the indexes, S&P, Nasdaq, Gold, FANG, and all the alternative indexes mentioned here. When this index Tips, we will make a note of that event in this blog space.