What Do Stock Market Bulls Have Left?

January 22, 2022

Bonds & Commodities. That's what the stock market bulls still have left.

But why do Futures matter to stock traders and investors?

Because the bond market and commodities market combined are waaaaay bigger than the stock market.

It starts with the information we're getting from futures markets, and then it trickles down to everything else from there.

With the stock market losing key support in the Nasdaq, S&P500, Small-caps, Transports and Bitcoin, what's left?

I think these 2 are what the bulls have left....

If Crude Oil is above former highs. And 10s are above the March highs, then how bad could things be?

But as we discussed at length on this week's call, the bearish argument for equities starts with a failed breakout in the US 10yr Yield.

And at this point, I would throw Crude Oil into that same category.

If we lose these two above, there's not much left for stock market bulls to hang their hat.

That's why commodities matter. That's why the bond market matters.

It might not matter to you, but it matters to what actually moves stock prices.

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