Even though the Producer Price Index (PPI) came in hotter than expected last week, conventional wisdom now sees three rate cuts. This means names avoided because of the maturity wall or industries held back from higher rates are seeing buyers dive in droves. Materials (XLB), Real Estate (XLRE), and Utilities (XLU) had one heck of a week.

But the biggest reset theme is the move into the small-cap, which has been rude for a few years.

The World Turns Up

International Indices also received a big-time bid on improved hypes. The long-awaited rotation in international markets, especially emerging markets, has also begun.

If the market rallies until it reaches the furthest point of ‘extreme greed,’ then this leg is only the start.

The Assassination Attempt

The assassination attempt on former President Trump was shocking — but not surprising.

Axios posted the headline and story about a sort of ‘we are all to blame’ article that concludes there will be more violence. I don’t think there has to be more violence. However, I believe the mainstream media should get the lion's share of the blame if there is. The deliberate misinformation and character assassinations over the past decade have stoked this fire more than anything else.

A Divided House Cannot Stand.

This is a very interesting poll on how united or divided the country is now.

https://today.yougov.com/topics/politics/survey-results/daily/2024/07/14/35dca/1

Today’s Session

Earnings ramp up this week and then go through the roof the following weeks.

Last week, the market was abuzz with the possibility of the Fed making imminent and potentially aggressive cuts. This week, the focus shifts to the 'Trump Trade ', a term that carries different interpretations for various market observers.

However, the key to the rally will be earnings results and guidance because so much of the 2024 rally is based on the assumption of higher earnings as the year progresses.