What Type Of Environment Is This?

These are all characteristics of an environment where stocks should do well.

It's when Staples catch a bid relative to other stocks that we tend to see a problem.

Meanwhile, I hear a lot of investors asking about whether or not stocks will correct.

May I remind you, the majority of stocks have been in a correction for most of 2021:

Some stocks have done well. Most have not.

These two below have been consistent leading indicators for the overall market.

We lean on these for information.

The way I see it, if these two can get going, there are few things more bullish for the equities market:

And keep in mind that all 20 stocks in the Dow Jones Transportation Average are in the S&P Industrials Sector.

I continue to point to this one below as arguably the most important chart in the world:

An upside resolution here will likely tell us a lot about the strength for stocks this Fall.

Another one worth watching is the Gold Mining Sector.

We sold puts this week and so far that trade is working:

If Gold Miners were going to catch a bid, this seems like a very logical place for that to occur.

Look at all that former resistance since 2013, that turned into support once already earlier this year:

If we're above those Q1 lows, then the risk vs reward is skewed very much in favor of the bulls here.

We still like precious metals higher.

Also in the Commodities space is the new highs in the Baltic Dry Index.

I don't think we can ignore this one:

I see more demand for shipping raw materials.

Is that historically a bad thing for stocks?

It's got me thinking this week, especially with Coal futures making new highs:

I think this one below is the final piece to that puzzle.

If the US 10yr Yield can get back above 1.4% and stay there, that would likely be a positive for Small-caps and for Bank stocks, two big keys to a bull market.

Can rates get it done?

We're watching.

The Fall is here.

The biggest PMs are almost back from the Hamptons.

Expect some fireworks....

JC