It was a bearish week for US equity indexes, with net weekly declines ranging from -4.6% (Transports), -3.4% (Dow), -3.3% (NYSE comp'), -1.9% (SPX), to -0.3% (Nasdaq comp').
Lets take our regular look at five of the main US indexes
sp'500
Nasdaq comp'
Dow
NYSE comp'
Trans
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Summary
All five US equity indexes were net lower for the week.
The Transports lead the way lower, with the Nasdaq comp' resilient.
The SPX broke a new historic high.
More broadly, all five US equity indexes are trading above their respective monthly 10MA, and I thus see the m/t trend in all five as bullish.
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Looking ahead
Earnings:
M -
T - PLUG
W - WGO, KBH, FUL
T - DRI, ACN, CCL, RAD, BB, FDX, NKE
F - JKS, KMX, PAYX
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Econ-data/events
M -
T - Existing home sales
W - Intl. trade, PMI manu', PMI serv', new home sales, EIA Pet',
T - Weekly jobs, durable goods orders, GDP Q1 (print 3)
F - Pers' income/outlays, consumer sent'
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Final note
Friday ended on a pretty ugly note, but it'd seem almost everyone holds the view that if the market isn't breaking a new historic high EVERY... SINGLE... DAY, then 'a crash is clearly underway'. Most have little to zero perspective, and would rather focus on the Friday drop, rather than the SPX printing a new historic high... just a handful of days earlier.
It should be clear as crystal, that the market and mainstream cheerleaders, will be more than willing to play along with the Fed's notion that inflation will be 'transitory' for some months. It should also be clear that rate hikes are being systematically brought forward. This past FOMC saw a projected move in rate hikes from 2024 to 2023. In another few months, even Print Central will be alluding, or outright forecasting rate hikes in 2022.
Ohh, and if you think we're in the process of returning to even 'semi-normalcy', I suggest you go outside for an hour or two. Take a look at those around you. Do you see it?
In any case, we have an interesting summer ahead, as the printing continues to juice almost every asset class, with the madness of ZIRP that directly supports a shift of wealth from the working poor to the societal/political elite. Congratulations.
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Have
a good weekend
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*the next post on this page will likely appear 5pm EST on Monday.
