Just a few clicks from extreme greed yesterday is the fastest surge in the Fear & Greed Index I’ve ever seen.

But it was tough to spread the love beyond those sizzling growth sectors.

Equus caballus Leads the Way

The market struggled to gain traction all session long, but investors probably didn’t notice with the Herculean moves in fan favorites that have picked up a steady hoofbeat.

When the Clydesdales of large-cap growth and momentum get moving, the rest of the market can finish in the red, but it will still finish higher.

Red Flags

The percentage of names over their 20-day moving average climbed to over 80%, which usually signals short-term overbought conditions.

The Ten-Year Treasury Yield (TNX) is climbing again and undoubtedly will become a conversation topic. The bears will see it as a lifeline to restart the doom and gloom campaign. It shouldn’t work.

Hard Way

The gap between hard and soft data is now the widest in over two decades. The Street is looking for a miss on retail sales.

I have no idea what the number will be, but retailer stocks made huge strides long before the China pause.

Today’s Session

There was a lot of data this morning, and when woven together, it paints a picture of consumers who will not pay much for price increases. 

Walmart (WMT) posted mixed results but had the same competent execution. Management withdrew second-quarter guidance, reiterating full-year numbers, and suggesting they will get a handle on trade volatility. The CEO says price hikes will begin later this month (I thought they had months of inventory). I doubt folks will pay too much. 

PPI

Month to month PPI moved -0.5%, the lowest since April 2020. Today’s numbers are even more impressive considering the massive higher revisions to March. The biggest hits happen in corporate margins, which means they are eating a lot of tariff costs.

Equity futures tried to bounce, but this looks like a consolidation day. Meanwhile bond yields are down a little – I’ll take it.

Tweet

 

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