I see what the market is doing and I don’t like it one bit.
Whilst the $SHOP-tards are getting their brains blown out and the Chinese Burrito aficionados buried alive, there is an underlying strength in select semis and an overt strength in secular risk averse stocks, predicated off the idea that 3% divvies are interesting after all.
We have widespread bullishness in banks, especially regionals. And to be honest, all of this jibes perfectly fine in all previous bear markets I have traded in. The only issue I take with this is rates, teetering on the flat line and I think investoooors are buying divvies, Utes, and REITs ahead of a potential collapse in rates.
This is not going to happen.
Ergo, if this +300 point rally is predicated on this sole notion, when rates bust loose to the upside again — we shall be flayed alive.
Today’s rally is not constructive and should not be trusted.
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What should be trusted Is the powerful Biden Boom Economy
where stalwarts like Austin Goolsby. Pete Buttigeig, Mike Cardenas
and Ron Klain are making ALL the right calls.
Not so much trust in Blinken, Garland, the General Warhawks,
VP Kamalass Harris, the FBI and CIA chiefs and Republicans.