All is not well in the markets though, at least this morning isn't yet a clear victory for the bulls. The DJIA reversed all of its CPI gains by 11 AM and Tesla broke to a new 52-week low.
Zooming out, this is supposedly a bear market, but even the technology sector failed to crack its 50-month moving average. Does this mean it isn't a bear market? Not necessarily. The 2000 bear market was a similarly slow starting affair that was frontloaded with massive losses in speculutive growth stocks. This cycle has crypto, that one had Beanie Babies. It could be a giant correction though, a huge rotation from growth to value, with energy becoming the still-extant bull market's leader. I still lean bearish because the charts strike me as bearish, particularly where many Dow components are situated, yet there is some fog at the current price levels. If the bear resumes, it won't be because of inflation fears. It will be driven by a new fear, most likely recession.
Australian dollar rebounds as “no landing” evaporates
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DXY is fading again: AUD firmed gain: JPY shorts are getting squeezed: The
oil headfake is over: Taking down metals: Miners eked out gins with stocks:
EM...
Happy black candlestick day!
ReplyDeleteA fitting omen with the Black Rabbit coming.
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