S&P 500 didn‘t make it to the overnight lows during the regular session, and almost fully reversed Thursday‘s slide.
S&P 500 didn‘t make it to the overnight lows during the regular session, and almost fully reversed Thursday‘s slide. After an intraday tug of war, the credit markets leaned the bullish way, and VIX looks like it would try to move a little lower next. Coupled with the put/call ratio, that means a slight advantage for the bulls. Q2 2021 hedge fund letters, conferences and more The daily retreat in yields spurred a strong tech upswing – stronger one than in value. Given that yields are likely to keep rising due to the red hot inflation and in order to force Fed‘s hand on taper, that‘s a watchout for the bulls not to get carried away with Friday‘s upswing. Forget for a moment about the debt ceiling drama or the postponed vote on the $3.5T infrastructure bill. As I wrote on Thursday regarding inflation, commodities and supply chains, add in the question marks over economic growth and job market strength, and you‘ll get the stagflationary picture. Should this theme gather steam, it would lit the fuse under precious metals and commodities – just as it did in the 1970s,, and that‘s why rising interest rates needn‘t be gold‘s death knell, and why silver would rise in price and popularity. Such a time would correspond with a certain malaise in the stock market, to put it mildly. Real assets stand to gain much – and this time, cryptos as a then non-existent asset class, would benefit too. Earliest, I‘m looking for profits in energy, base metals, agrifoods and the other real assets – indeed, the open long oil and copper positions are solidly profitable again.
