We'll Need More Than "Good Progress" By Friday

If the Strait of Hormuz Remains Restricted, the Markets Will Not Hold Up

• The rally in the stock market was a strong one yesterday…and it helped the major averages bounce off the key support levels we highlighted in our weekend piece. So, that has given investors some badly needed relief.

• The issues facing the private credit market are not receding…so brushing these problems aside is not a good idea. Besides, certain issues facing the public credit markets are not benign either. Thus, the risk/reward equation in the marketplace right now is still decidedly weight towards risk.

• It all comes down to the re-opening the Strait of Hormuz. So, if we hear that “good progress is being made” in the negotiations at the end of this week, it won’t be enough…if the Strait remains very restricted.