Monday was a classic tooth-and-nail session, and the market succumbed in the final minutes of trading as Technology (XLK) and Industrials (XLI) yielded their gains.

The short-term bias for the S&P 500 and NASDAQ-100 (NDX) is to the downside, but the iShares Russell 2000 ETF (IWM) could also see its bias shift lower. Make no mistake, this is a loopy market.

The Comeuppance of Tech

Only Technology and Communication Services (XLC) trended higher for an extended period, while the rest of the market trended lower. Chip stocks looked awful and Lattice Semiconductor (LSCC) missed the consensus after the close.

Yesterday, the madness of the Tech Sector saw big gainers from Friday get pounded.

It looks like a typical consolidation for the Russell 2000, where the question begs, which names can consistently lead the way?

Congratulations, America

I didn’t have time to post this yesterday, but I wanted to mention that we eclipsed another milestone that is, in some way, the ultimate sign of greatness.

How many nations could borrow 35.0 trillion dollars?

At this point, we are so numb to the numbers that when Treasury Secretary Yellen promotes a global scheme to spend $78.0 trillion on climate change, with the U.S. contributing $20.5 trillion, there is no public protest or howling.

Sadly, the general public has become like a frog sitting in water brought to a boil. There was a time when a billion dollars for anything raised eyebrows. Now, trillions of dollars don't even illicit a shoulder shrug.

Maybe "quadrillion dollars" will wake folks up to the diminishing prospects of prosperity for our children and grandchildren

Fed Jay Powell and his buddies have undoubtedly played a significant role in this debacle, but the federal government has been feckless.

There is currently a price being paid for this nonsense, and there will be a greater price to pay.

The Looming Slowdown

Fitch Ratings issued dire warnings about the looming economic slowdown. It could exacerbate the Main Street powder keg if the Fed is too late to cut rates.

Today’s Session

Once again, the market has mixed reactions to earnings releases, which seem to have even less to do with beating and more to do with the song and dance show of the conference call.

We get results from Microsoft (MSFT) after the closing bell. We’ll recap in this afternoon’s note.

Comments

We need to elect Leaders that will take meaningful action to reduce ALL Government Spending, Adhere to Balanced Budgets, and reduce the size of Government that creates wasteful spending. P. Krueger on 7/30/2024 11:17:00 AM

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