The "Fed put" Is Back...But For How Long?
We have some new readers, so we want to reiterate that we always try to provide points from both sides of the bull/bear ledger each weekend. Therefore, it might seem like we’re sending out conflicting signals from time to time. However, we do try to let people know which side of that ledger we stand on at any given time, so there shouldn’t be any problems figuring out our overall opinion.
Table of Contents:
1) The rally off the March lows in stocks has been liquidity driven…pure and simple.
2) The debt ceiling debate has actually been a non-factor in the marketplace so far.
3) The S&P 500 & NDX 100 are at very important resistance levels, but they’re also overbought.
4) Last week gave us more evidence that we’re heading for a recession.
5) Tech acts great, but the XLK and SMH tech ETFs are also getting overbought.
6) We’re less bullish on the energy sector, but we’re not bearish…at least not yet.
7) Defensive groups: Normal pullback or the beginning of a rotation away from these groups?
8) Japan’s stock market has become ripe for a short-term pullback.
9) AI is going to cost A LOT of people their jobs.
10) Summary of our current stance: The “Fed put” is back…but for how long?