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.
Macro Afternoon
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A mixed reaction to the slip on Wall Street overnight across Asian stock
markets with local stocks losing their risk on mood the most, while Chinese
shar...
Happy black candlestick day!
ReplyDeleteA fitting omen with the Black Rabbit coming.
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