What To Watch
The key variables we’ll need to watch as we digest the variant views are two-fold. First, the financials; as demonstrated yesterday in real-time, are the carrot to the market’s horse. Goldman Sachs (GS), Bank America (BAC) and Citigroup (C) (notably laggy today) are stocks to watch in that sector.
Second, the dollar, which is up smartly today. We’ve been on the “asset class deflation vs. dollar devaluation” train long before most media outlets knew there were tracks. Given the tick-by-tick negative correlation the last few months, this relationship gained mas press but remember Minyans, this is a big picture dynamic. A grabby greenback for a day is one thing; sustained strength is an entirely different conversation.
One of the first things I learned on Wall Street? Rallies end on good news, not bad news. Market internals are buff and sentiment is snazzy (don’t blink, it’s also reactive), so keep that axiom tucked somewhere in the back of your crowded keppe.
Comments »
No comments yet.
RSS feed for comments on this post.
Leave a comment
Line and paragraph breaks automatic, e-mail address never displayed, HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>