The Asset Bubble Churn Continues

Today we published an article written by Bloomberg’s John Auther. It is an interesting look at research done around other pandemics. Go to home page menu: Covid – Another Viewpoint

As to todays Market Update at Noon

Here is a little update on the Market Picture Factors charts that we show periodically. These again are indexes set to 1.00 on February 24, 2021, the date when the Final Bubble Roll started. Reviewing the fact that the high for the composite chart of the bubble was hit on May 10th. We are listing the values for each chart in order, February 24, May 10, and today July 12, and net change between February 24 and May 10, and change between May 10 and today.

  1. Composite Assets:  DJI,SPX,NDX,TLT,IEF,HYG,GLD,VNQ,CRB,BTC: 1.00; 1.05; 1.06; + 0.06, – 0.01
  2. Composite Five Factor:  SPX,NDX,TLT,GLD,CRB; 1.00; 1.04; 1.07; +0.04,+ 0.03; + 0.04, + 0.03
  3. Four Factor Stocks:  SPX,NDX,DJI,RUT: 1.00; 1.05; 1.08; +0.05, + 0.03
  4. FANG Stocks:  FB,AAPL,NFLX,GOOG: 1.00; 1.06; 1.18; + 0.06, + 0.12
  5. FANG WB Stocks: SHOP,SPLK,DOCU,ZM,BYND,TTD,OKTA,ROKU,SQ,CRWD; 1.00; 0.75; 0.94; – 0.25; +0.19
  6. MAIN Street Retail:  WMT,COST,HD,TGT,LOW,TSCO,AXP,FDX; 1.00; 1.19; 1.18; +0.19, -0.01
  7. Infrastructure: CLF,CAT,XLE,FCX; 1.00; 1.19, 1.09; +0.19, -0.10
  8. Travel and Entertainment: AAL,DAL,UAL,LUV,RCL,NCLH,CCL; 1.00; 1.00; 0.91; 0.00, -0.09
  9. ARKK Futuristics: ARKK, ARKF, ARKG, ARKW, ARKQ; 1.00; 0.82; 0.90; -0.18, +0.08
  10. MEME stocks: AMC, GME, BB, NOK, BBBY, KOSS, TLRY, MUIS, PETS, WEN; 1.00; 1.25; 1.77; +0.25, +0.52
  11. Bitcoin: BTCUSD, ETHEREUM_XBT; 1.00; 1.85; 0.98; + 0.85, -0.87
  12. Bank/Finance: GS, JPM, WFC, MS, C, BAC: 1.00, 1.15, 1.11; +0.15, -0.04

So it is all a little bit interesting to watch. There is a lot of spec Wall Street money around and the game continues, run up sectors, grab the public money, then get out and move to another sector. The crap sectors, MEME and Bitcoin have gotten the most volatility. You may not that with bank earnings front and center tomorrow I have added a Bank/Finance sector to the list.

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