Major Changes Coming from the Fed…Thursday’s Expiration-Induced Rally Won’t Offset Them for Long

Table of Contents:

1) “Rotation” would be good, but the overbought chip stocks NEED to keep rallying for the market to keep rising.

2) The industrial stocks are starting to breakout. We have another one to look at.

3) The biotech stocks could be another good group which see some “rotation” money very soon.

4) Many of the Mag 7 stocks (even the best ones) are losing some serious momentum.

5) Did Chairman Warsh just tell us that the “Fed put” is not further “out of the money” than it used to be?

6) The bond market charts…and the chart on the bank stocks…stand at very key junctures.

7) Reviewing the charts on the major stock averages.

8) It’s still all about liquidity…so we need to keep a very close eye on the USDJPY.

9) Potpourri……Big negative bet on the high yield market last week.

10) Summary of our current stance.