Sitting in a Quiet Period, with late update
Here we are at noon on Monday, February 28th. I really have little to add to my comments over the past few days. The ARKK and RIVN stocks, what I would call core tech stocks are working. I am still short a little oil, as I see a two factor decline starting as soon as either Russia or Ukraine gets a definitive edge.
Remember there is a big short contingent in the stock market at the moment and today is to be their expected BIG DAY, still watching.
Probably watching people is the most important stance, Powell, Putin, Zelensky, and Biden. And I am anticipating a definitive Trump meltdown that will suck a lot of his followers down a rat hole.
Late update: Market Driver, 2-year interest rates…
As we all have observed, over the past six months, as the FED has talked about fighting inflation the FED has focused on talking up short-term rates rather than tackling long-term inflation through selling bonds. Here is a chart that shows the relationship between stock prices and the 2 year interest rate. What is important about this is that as we mentioned last week, rates appear to have peaked. What will happen to stock prices as rates decline?