Most markets do not change their stripes in 10 minutes. This market is not like most markets. It started out with a refreshing change of the semiconductors and tech leading and retail following, and then devolved into the fertilizers at the helm and a bedraggled group of disparate stocks not far behind.
What's with the waffling? I think it is all about peak Delta or lack thereof. We just don't know if we are on the verge of an India or UK moment or if we are headed into some sort of oblivion where we are more like Mexico or Brazil for heaven's sakes. You would think that's not possible but if there are 50 million people who insist on not getting vaccinated you are going to get all sorts of bad numbers from the economy starting with these now dismal numbers from the FAA about travel.
Plus we have these problems from China that I think are at the crux of a near historic collapse of commodities, something that the Fed may cheer but is freaking out the market.
I come down on the side that we are closer to peak but that peak is more of a plateau than it is a sharp drop off which leaves something for nobody. I am giving a Action Alerts PLUS club call this Wednesday where I do hope you can attend, and I will be addressing this head on after dealing with multiple public health officials who are doing their best to figure out a strategy that can help conclude this portion of the pandemic.
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We rallied, because China's President Xi and Fed Chair Powell made decisions that they knew would lead to rallies.
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