Too Far, Too Fast....Nice Rally, But Fundamentals Still Matter
Renewed liquidity injections have helped buoy the market during the mini-banking crisis. We question whether this liquidity will continue to flow. As investors come to fully realize that we're headed for a hard landing, the investment landscape will change. (The bond market is already telling us this.)
Table of Contents:
1) The “Fed put” has returned…but for how long?....That is THE key question.
2) There is a big divergence between the stock market…and the bond market/bank stocks.
3) If the 10yr yield drops below this level, it will signal a hard landing is imminent.
4) The chart on the NDX Nasdaq 100 is quite bullish (but we still need to be a bit careful).
5) Update on the charts for the S&P 500 and Russell 2000. (Both look good as well.)
6) There are plenty of signs that the economy will see a hard landing.
7) We’re still bullish on gold & silver, but silver is overbought near-term.
8) MSFT is one of several stocks to keep a VERY close eye on going forward.
9) Potpourri…..Banks, techs, BOJ, HYG, Iowa hoops, The Judge, Masters prediction.
10) Summary of our current stance.