I joked on Saturday on Twitter that ‘The FED would do an emergency rate cut on Sunday to stoop the riots‘.
Combine riots and looting with some of the frothy sentiment signals I am seeing in the streams I would not be surprised at a strong pullback.
This weekend there were hundreds of peaceful protests and too many scenes of violence. It was heartbreaking to see videos and pictures including the Coronado bridge being closed down for the day as police stood guard
As always, Ivanhoff and I did our Momentum Monday and we went a little longer and covered a lot of ground because of the sentiment I mentioned above and the wide range of stocks breaking out and doing well. I also ate some bacon and smoked a cigar to celebrate the $VIX dropping below 30.
You can watch/lesten to the video here.
We could not get my screenshare working so here are some other links and charts I wanted to share.
All Star Charts monthly recap is always great.
I loved this chart from Strategas – maybe it means something bad, but good luck timing it. I sense as a country we have never been as overdiversifed and underdiversified at the same time.
In the private markets ‘the Doordash pizza arbitrage‘ is both genius and stupid. On the heels of the Softbank debacles, it seems like we are pushing our luck.
We have had a ‘V’ recovery in the indexes and you have to squint to see the ‘V’ recovery in consumer confidence. Makes me nervous.
If you find yourself bearish this week have a look at the data compiled by Ryan Detrick on the breadth surge in stocks since April and what it means for the markets one year out. I have bookmarked it under ‘buy the dips’.
Finally – last month on this blog I mentioned two ideas – Taser ($AAXN) and Bitcoin. I think we know after this weekend why they continue to be strong.
I hope cooler heads prevail this week and people can protest in peace.
Have a good week.
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