1. 1 but underneath, it was insane after a big dip at the opening, the market came roaring back into the black. This was a day when both the recession stocks and the recovery stocks worked long term thats just knot sustainable. Sooner or later, someone, one of these two groups has to be wrong but short term as were taught, anything goes. Let me break this one down for you. This market has two big themes, completely contradictory and a third team thats down right apocalypse first, the american awakens train. The people who buy into this thesis, well, they believe the government made a terrible mistake locking down the economy. Im part of that group we wont make that mistake again. Now that the country is reopening, they expect people to go out and spend and return to work as they see it for all intensive purposes, the pandemic is behind us the worst is over. We have a better understanding how to treat covid and in the fall it wont be on the radar screen despite records in florida and te
Stocks of companies with obviously great fundamentals but a Battle Ground with fire. And madness. Count me out too much effort. Sometimes though you have to take a stand and in a market like this one where the bullish animal spirits can bowl anybody over. Including today the dow inched up 30 points s p advanced and then some battlegrounds, even for me, too tempting to ignore thats why i have been taking a stand with tesla i might have gone back and forth, two of the biggest hornets nests of our time what separates the tesla a battleground stock that i feel compelled to champion from the netflix which i lost conviction in championing it for years at lower levels okay, all my career i have been fascinated by companies with vociferous bulls and ferocious bears if only because theyre so entertainling. Three things distinguished the stocks from regular run of the mill equities. First, theyre cult like the house of pleasure. People buy them because they love the product and the product trans
Call me or tweet me jim cramer, the battle between truth and fiction plays out every da i in this market, and sadly, fiction usually wins that includes days like today where the dow shed 181 points, s p declined. 76 , nasdaq lost 1. 15 . Last fall, things have turned nasty, havent they . Im starting to see the same old negative on wheat creep back in the market, plagued by imaginary scenarios, we convince ourselves represent reality, and make us say, who needs this nonsense lets just go sell everything and buy some bonds house of pleasure. The first absurdity, the first fantasy, that somehow theres a correlation between the newly weak bank stocks and reality, because these Bank Failures last spring have left a nasty taste in our mouths. The vast majority are doing well in this country. Guess, what they werent doing it anyway. Almost every class of loans is doing great, credit cards, home equity, Small Business loans, even the dreaded Office Building loans are looking good, which are a
Clawing back. And nvidia is bouncing after lossing 13 last week. Theres the stock up nearly 5 right now. Meta, microsoft, alphabet all higher as well as we enter the final stretch. The first of the megacap names to report. Yields are steady. Thats been the case of late. Looking at the ten year, 4. 62. The pce report coming on friday and thats looming especially large given the backup in Interest Rates. It takes us to our talk of the tape. Where is the next move for psps stocks likely to be after the end of the week. Lets ask gabrielle santos. What do you think about this week, last week was rough. Do you think the worse is behind us . I think there are two separate things going on. The first was the initial macro driven correction we saw in stocks that affected a multitude of sectors related to Interest Rate volatility related to inflation, expectations overshooting. Related to the move higher in oil and the dollar. I think early signs that that one has run its course if you look at fe
Were decoupling 2. 27 . 30year at 3 . Fiveyear at 2. 6. And i go through all of those to highlight the yield is steepening and continues to do so. Global yields, this is getting interesting. Italian tenyear, 2. 21 . Its moved 18 basis points in a day. You see the biggest weekly rise, oneweek rise for the italian, german and french tenyear yield, we have seen it happen the highest in years. How long . 30 years. But all the strategists said probably five years four or five years ago we were wait iin. Here we are. What was happening the entire time that rates were not going up . We were sub2 . We were stuck in the muck, basically. The greatest thing, i mean, to see the stock market hitting new highs while rates are surging, if youre at zero on rates and sooner or later you have to normalize, if rising rates are going to move into financial assets, you have a problem with stocks going down. Unless you decouple. Rates are going up for good reason, then the stocks go up at the same time. You