While we sit and wait patiently for markets to collapse again, the rotation out of commodities and back into growth areas of the market continues. There is no denying we are seeing RISK ON, with leadership in SAAS, retail, and biotech. My problem with all of this is based on the worldview it’s all nonsense and nothing more than a summer fling.
This morning we have strong moves in anything consumer based, from online vendors like SE to SHOP to RVLV and almost the entire software sector is on fire.
Commodity related stocks haven’t been overtly weak, but just not as poppy on big days and there has been a steady progression down for WTI.
Yesterday all the rage was small capped Chinese stocks, likely due to China not bombing Taiwan and traders just acting retarded, bidding up everything.
PayPal crushed earnings, giving the bedraggled BNPL sector of stocks strong bids: SQ, UPST, AFRM. Those stocks all looked like zeroes a few months ago and now they look solid.
Bottom line: it’s not all doom and gloom, sadly. We must acknowledge constructive behavior when we see it and trade the tape in front of us, not the one we want or pretend exists.
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