Bull phase is Close to Starting…

Things are happening.

It looks to me like the primary market buyers today are those being forced to exit bearish macro positioning.

We have yet to start the bullish macro phase. See the RUT/NDX relationship chart here which we have been watching for a signal that the bull market is starting. So far the building blocks of tech support stocks have dominated the scene. Things are changing today with the breakout of the small caps.

Comments after the Close today…

I think one can pretty much ignore all the seasonal Christmas Rally talk. This is much bigger. It includes the fact that the big guys in the market have had an overall bearish view through this whole bottoming period that started in June 2022.

And secondly, this is really about the end of the eleven year FED funny money experiment. Now companies are being forced to build real things that work, they don’t have speculative money with which to play. And they are making it work, free markets are working. The market had not figured that out before today.

And one more thing, while interest rates may decline a bit going forward, they are more likely to stay in the current general range…this is not about rates…other than FED pushing them higher from here had no justification.