The Adjustment.. The markets seem to be taking over the idea that Omicron is the last of Covid, that it will burn out by infecting all the no-vaxers. Those no-vaxers remaining will limp forward and stop vectoring the virus around…Continue Reading →
We didn’t see a close under 4440 on the S&P this week, so back to rotation mode for a while. The market seems to see blue skies ahead, thinks this is the last hurrah for COVID as more and more…Continue Reading →
As we have been trying to point out in recent posts, the big issue is an overvalued stock market, the Bubble, and that market has topped out. The FED has gotten the message, albeit late, but they also know that…Continue Reading →
And that is a problem. A leaking bubble, one based on reduced economic activity, leaves a mess that is difficult to clean-up, it just kind of drapes over everything. If on the other hand, the FED would have acted earlier…Continue Reading →
I am talking about the staging before the market breaks out to lower levels below the Bubble. Early stock sellers are moving into bonds and this keeps interest rates from adjusting to inflation numbers. Levels I am watching where a…Continue Reading →
The FED yesterday blew its chance to get out in front of the inflation wave. Now the markets are in charge, this will be complicated. But you can keep it simple. Don’t forget, the stock market is overvalued. Don’t forget…Continue Reading →
Everything points to a FED forced Pivot, yet the market refuses to acknowledge or pivot their views or positions. One point that I have made many times during the Bubble, not everyone will be able to get out of a…Continue Reading →
Rotation has been the guiding word for the stock market for the last ten months, ever since February 24, 2021. But, things are changing, the funny money base for the Ferris Wheel is sinking, with the possibility that most of…Continue Reading →
Keep in mind the signal we are waiting for to confirm that a major downturn in stocks is imminent, is the day when stocks and bonds both go down. So far today stocks are down a little more than one…Continue Reading →
So, we move the chess pieces around the board while awaiting the FED meeting. The larger background piece is the much talked about supply bottlenecks which are really the result of manufacturers and suppliers building huge inventories for the much…Continue Reading →