Chart of the Day
Worst 6 Month For Stocks: May to October
The S&P shook off last week’s selling and in x days rallied 132 points off its 4120.25 low. The bulls won and the bears lost. Straight up, I will never say the markets can’t or won’t sell-off. They eventually have to but for now, I think it’s easier and more profitable to buy the pullbacks than sell them. The economy is ‘flush’ with liquidity. Rates are still historically low and I am not even sure the markets will sell off if inflation picks up. You just cannot fight the fed or the trend. The ES makes a high, it starts to sell off over a 1 to 3 day period and could not look worse, and then in one day, the S&P regains most of its lost ground. I know, sometimes there are 6 to 9-day sell-offs but it’s the same thing over and over. There are billions of dollars that have been sidelined waiting for a 10% or 20% pullback.
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