I think, actually, yes. Two reasons: 1. We can't just keep selling because of the 10-year yield. We learned that last quarter and; 2. We trade off of what's in front of us on a given day, and the Micron upgrade and the Macy's quarter are what's worth trading off of. An absence of news makes us grow fonder of what we have.
I believe in the doctrine that rate increases based on the health of the economy should be accepted, even embraced, versus taper tantrums where the economy is not ready for higher rates.
Look no further than Europe. You want to own and invest in a continent where, even with ridiculously low rates, the economy can't get moving? Is that intriguing to you? We sold our ETF that gave you exposure to the stock market in euros, caught a little gain, because we want to be in a market that's not on life support.
Of course this is one of those heads the bears wins, tails the bears lose situations because when rates were lower we were worried about companies beating earnings estimates. Many times they didn't.
Now we are worried about rates being too high even as companies are clobbering the estimates. You can't have it no ways.
Which brings me to Macy's and Micron. Macy's is a total bellwether department store, and department stores matter, even in the age of Amazon (AMZN) . They are a terrific tell of consumer sentiment and spending because you never have to buy anything there. How important, really, are $300 perfume, $200 shoes and $400 dresses?
Not that important.
But they sure are selling well.
Micron? Stalled stock, sells at five times earnings as the world braces for more DRAM and flash supply. This morning, though, RBC says that pricing's stable for their products and points out that there's an analyst meeting next week that will be very positive for the company.
The $80 target price for this $55 stocks, with a catalyst ahead, a catalyst where you will hear that there's not as much cyclicality as the old days and you have to take the boom-bust scenario off the table? That's a buy to me.
Both stocks are heavy with pin action. Both stocks are leaders.
Both stocks can't blunt big sell programs but they do present plenty of opportunities to buy lots of stocks in their orbs.