Big Divergences Are Not Resolved Overnight
For those who didn’t see my note last weekend, I will be away this weekend (visiting my 93-year-old father…on what would have been my mother’s 94th birthday). Therefore, I’m sending out an abbreviated weekend piece this evening. There will be no morning piece on Friday, but I will be publishing again Monday morning…..Thank you.
Table of Contents:
1) We’ll begin with a shortened version of what would have been our “Morning Comment” this morning.
2) Stocks have a long way to go to resolve the divergence with the bond market…even if yields pullback near-term.
3) Updating the charts on the SPX, NDX, & RUT…..A reversal in trend has basically been confirmed.
4) Treasury yields are definitely getting ripe for reversal…but that won’t help stocks for very long.
5) The steepening yield curve is a negative development, NOT a bullish one!
6) The dollar is becoming extremely overbought and over-loved on a near-term basis.
7) Nike (NKE) is getting very, very oversold. It should bounce soon (no matter what they report today).
8) WTI crude oil keeps rising, but it should take some sort of breather quite soon.
9) We’ve been hot since mid-summer.
10) Summary of our current stance.