From the desk of Steve Strazza @sstrazza
At the beginning of each week, we publish performance tables for a variety of different asset classes and categories, along with commentary on each.
Looking at the past helps put the future into context. In this post, we review the absolute and relative trends at play and preview some of the things we’re watching to profit in the weeks and months ahead.
Every major asset class on Earth continues to illustrate risk-taking behavior on the part of market participants.
Yields, Oil, Equities, Base Metals, the Australian Dollar — there’s an overwhelming amount of new highs in offensive areas of the market right now. The weight of the evidence continues to suggest that we want to be buyers, not sellers, of stocks.
The same bullish developments and themes that we’ve been pounding the table on for months continue to reinforce our stance. Some examples: the rotation into SMIDs, breadth thrusts, the reflation trade, and defensive alternatives making relative lows.
As we said last week, bulls are flush with options to make money in this environment. At the same time, the list of opportunities for bears continues to dwindle by the day.