Selling the Omicron Bounce

Outside of stocks negatively impacted by lockdowns, I will be looking for a spot to sell an "omicron" bounce. The virus is a distraction from tightening financial conditions. The lifting of pandemic fear will increase inflation in the short-term. Some governments are still locking down air travel though. Markets may have the worst of all possible worlds with governments actively destroying the economy, central banks doing the right thing directionally by reducing their intervention and seemingly persistent high inflation.

The Nasdaq is the center of weakness if pandemic fears subside. The Nasdaq will be the first index to signal the sell-off isn't finished.