It was a boring day yesterday in the stock market…unless you traded Tupperware (TUP). The problem is that the recent 500%+ rally in TUP is another sign that some froth has moved back into the stock market.
Despite the belief that the Fed is done (or at least very close to being done) hiking interest rates, bond yields remain elevated. At some point, that’s going to create headwinds for this stock rally if we don’t get some relief on this front.
The Bloomberg Commodity Index is testing a very important resistance level. If it breaks above this level (either now, or after it works off a short-term overbought condition), it’s going to confirm a change in trend for commodities. That, in turn, will not be good for those hoping for Treasury yield to fall in the months ahead.
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