High for Longer...and Increased Tensions in the Middle East...Not a Bullish Combination.
I will be out next week so that I can visit my father…who is now in hospice. If we see some big moves next week, I will send out a morning note once or twice, but there will be no weekend piece next weekend. Thank you.
Table of Contents:
1) The odds that a full Middle East regional conflict will develop have now risen in a meaningful way.
2) A very important leg for the stool of the current bull market has been removed, so earnings estimates need to grow.
3) There are three key tech stocks that still look absolutely fabulous…both fundamentally and technically.
4) Updating the charts on the major averages…Some real cracks are now developing.
5) The dollar’s rally has reasserted itself. That might sound good, but is’ not positive for several risk asset classes.
6) A look at the charts on several different stock market sectors. (Some cracks are developing there as well.)
7) The high yield market is another one that is now raising some concerns about the big stock rally since October.
8) The infrastructure names have become VERY overbought. So, it’s probably better to add to them on weakness.
9) “Inflation Will Delay, but Not Stop, Rate Cuts”
10) Summary of our current stance.