Inflation in the market is real — Joy of the Trade’s Jeff Zananiri and I have been driving this point home for months now... And Wednesday’s Consumer Price Index data was the final nail in the coffin.
Now, the Federal Reserve is going to be forced to capitulate at the worst time, stop tapering faster than planned, and raise rates earlier and more aggressively than it wanted. And that’s going to smash the growth of the economy for some time.
Despite negative news from Walt Disney Co., markets still opened higher Friday Morning.
The bond market was closed Thursday for Veterans Day but opened back up Friday morning with the 10-year Treasury yield up to 1.58%. U.S. stock futures were even up thanks to strength in the Dow following health care giant Johnson & Johnson’s announcement that it will be splitting into two companies.
All eyes were also on U.S. consumer sentiment data, which is a big deal because consumer spending makes up two-thirds of our economy.
Also on my radar is the put/call ratio. It was at 0.81 when I wrote this Friday, but has dropped below 0.70 a few times recently, indicating that the market is too bullish.
I do a ton of sector analysis and use back-tested, proven strategies to beat the market. I use proprietary formulas based on relative strength to track the top 5 strongest stocks… You know, the ones I send you in my new weekly watchlist. But now I want to know which stocks you’d like to see rankings for! All you have to do is reply directly to this email with your tickers!
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