The Hot Inflation numbers today are unleashing an exuberance that is crossing all barriers. Stocks, commodities, and Bonds are having a good week. Only Gold is a laggard.
The stock market has held in nosebleed territory for so long, since mid-August 2020 by my reckoning, that few can remember the base it started from or anything about it, other than the hype over the past few months as the cheerleaders have been trying to hold it together for another leg up, is this the start of that new up-leg? Watch carefully, it doesn’t get much better than this.
So what are the conclusions after an hour of trading this morning.
- The reopening story is weak..
- The infrastructure buildout has been killed by the Republicans.
- So the original story behind the parabolic next up-leg of the market is dead.
- But nobody cares, the story has changed, the baseline story is back on top, the FED doesn’t have the Balls to seek stability.
- I am still believing this story “narrative” market doesn’t end well, a down week is still a possibility.
AND HERE IS A 10:00 AM CDT update
Most of the stock sectors that we follow and which we outlined yesterday are down, MEME the most and maybe most telling, the sector up the most, Wanna-Be Fang stocks are up the most. Not good as this group is the crap group of stocks this year.