The market finished higher, and the needle moved out of ‘fear,’ but look at the volume—or rather, the lack of volume. This used to matter, but yesterday’s narrow market changed many traditional rules. 

Market Breadth 

It's fascinating that the advancers and decliners for the New York Stock Exchange (NYSE) and the NASDAQ Composite were nearly identical.

New lows outpacing new highs on NASDAQ underscore the bifurcated nature of the market, where winners keep winning and those left in the dust fall into bottomless pits.

Historically, this sets up potentially great buys and still does, but on a more elongated time horizon. 

Market Breadth	NYSE	NASDAQ
Advancers	1,402	2,147
Decliners	1,403	2,094
New Highs	67	94
New Lows	59	174
Up Volume	1.79 billion	3.27 billion
Down Volume	1.79 billion	1.85 billion

Lots of Green on the Screen

Rotation

Rotation is now most prevalent among primary and secondary Artificial Intelligence (AI) plays.

But yesterday, Utilities (XLU) rocked.

Today’s Session

The market is looking to open lower.  The Ten year note auction could be a very big deal. 

There are lots of things to be concerned about including the persistent threat of CRE blowing up. 

For now, it's clear to stay away from regional banks, and in a perverse way, this will continue to benefit larger banks – which I hate to see.

Fear Mongers Always Get a Platform 

I have clashed with Harry Dent for two decades over his call for the complete destruction of the market (Before then he was the ultimate bull).  It sells a lot of books and stuff but does nothing but keep people out of the market.

On that note I got an email from a subscriber this morning I want to share along with my reply:

Subscriber:

Have you ever advocated for an all-cash position due to current events such as civil unrest or the probability of another terrorist or false flag event coinciding with the upcoming election?

Eileen 

My reply:

Hello Eileen

No, I have never advocated for all-cash.  The circumstances you mentioned have been in place through the rally that is +23% in the past year.

Wars have been great for the stock market, and we react to terrorist attacks with rallies.

My greatest fear is the financial manipulation, mounting debt and outright arrogance of those in charge that put ideology about the well-being of society.

The Malthusian approach doesn't care.

Basic math and common sense will prevail (sadly).

But hiding in a foxhole looking waiting for that moment has been folly.

I know folks still waiting to "jump back in" since 2009 - they were told another shoe was going to drop.

Comments

My fear is mounting debt being kicked down the road and bond buyers showing an increasing disinterest will cause massive money printing devaluing the USD leading to a global change of backup currency. Paul on 6/11/2024 10:32:28 AM

Harry Dent???? Harry Dent who??? Is he still trying to sell books with outrageous headlines? Charles, please continue to be the voice of reason that you are and have been. Patience will help us all settle back and think before we jump. Dick Denecker on 6/11/2024 2:51:43 PM

Tweet

 

Home | Products & Services | Education | In The Media | Help | About Us | Disclaimer | Privacy Policy | Terms of Use | All Rights Reserved.