Last week the DOW and small caps outperformed the S&P 500 and NASDAQ. It created an appearance of a positive divergence of breadth broadening. A breadth broadening is needed for a true bull market. But can a bull market be led by lower quality small cap stocks without the market leader such as Nvidia participating? […]
Will the major indexes which are made of the magnificent 7 stocks catch down with the under performing small cap stocks to force the Fed to pivot in early 2024 due to the troubles in the economy? Or will the small cap stocks catch up with the major indexes due to a strong economy that […]
The much better than expected inflation data released on last Tuesday propelled a broad market rally, especially the Russell 2000 small cap index rallied more than the major indexes that day. It looks as if the severely punished small cap stocks are primed to rise from ashes at this point. In response to the better […]
It’s getting challenging to keep track of all the events between the Fed, the U.S. Treasury Department bond sales, the war in the middle east and the U.S government pending shutdown. We will also have new inflation data release next week. Underneath the seemingly chaotic fundamental events, the stock market has been acting very You […]
The 10-year treasury yield formed a top last week by trading below 4.827% when the US Treasury Department announced a better than expected next quarter borrowing plan. The subsequent Fed meeting was dovish. To top if off, the less than expected jobs data further crashed the 10-year treasury yield. It’s weird that the stock market […]
The mega tech earnings report with the exception of Tesla has been so far so good. The growth engine in Microsoft, Google, Meta and Amazon are intact despite the tight monetary conditions. But the stock market reaction to the good earnings report has been muted. The mood is sour. Any minor earnings miss has been […]
