Digestion Period Over…

We probably have had enough digestion of last week’s activity. So, markets seem to be ready to start moving up again.

The fundamental bullish backdrop remains simply a combination of rising government deficits, rising GDP based on the AI buildout, the coming FED stop of Balance sheet decline, and a rising yield curve response that the markets expect from a new FED Chair in 2026.

Again, don’t forget, this is a manipulated market that is headed for the bubble phase but is not there yet. It will take a much bigger deficit, and Trump is fine with that. And we all know how this will end. Bitcoin will bounce again, but people are realizing it will not be a savior when things get dicey.

Interestingly during the shakeout of AI and what I call Tech related companies that occurred in November has not deterred the Green stocks, select solar, EV, battery, and related. My view is this is to be expected as they are under owned by the street, and this direction will be magnified as we go into the bubble.