This was, by far, the most important technical development of last week if not of Q4, thus far:
Long-term rates have broken their uptrend that started exactly around this time last year. They are currently targeting 3.1% in the short-term.
The response from the majority of the investment community is crickets.
Instead, investors are focusing on supposed bearish patterns in the major indices and a VIX that has been decimated, along with the usual suspects: Recession, inflation, China etc.
It's the same old song.
Never mind that the markets haven't moved at all since May, basically carving out what has been a complicated bottom that has upside to new highs and beyond.
Never mind that the markets not moving since May has come against a backdrop of every single thing that could go right for bears going absolutely perfect. We have seen it all, from geopolitical conflict, threat of nuclear catastrophe, tightening, Fed hostility and so on.
The market's response? Nothing. Same spot as May.
Bears fumbled badly...It's been over for awhile, they just don't understand yet.
This "bear market" has been a decimation of the excesses in the marketplace, including growth and crypto, while the major market averages consolidate preparing for new highs that are more imminent than most believe is possible. The Dow is already getting close, the S&P next up and when interest rates begin accelerating to the downside in the weeks ahead, the Nasdaq will join in, as well.
I'll say it again, this is best long side setup in a decade plus, including the March 2020 bottom, which I called with a strongly worded note on March 29th, 2020 titled "It's Time For Investors To Go All In On Equities" while everyone was preparing for the next Great Depression.
Bullish at S&P at 4026. Looking for 5000+ relatively soon.
Zenolytics Turning Points is 300+ editions in and only getting better. Find out why institutions and individual investors have come to depend on our service through each and every type of market environment. Click here for details
Disclaimer
This website is for informational purposes only and does not constitute a complete description of our investment advisory services. No information contained on this website constitutes investment advice.
This website should not be considered a solicitation, offer or recommendation for the purchase or sale of any securities or other financial products and services discussed herein. Viewers of this website will not be considered clients of T11 Capital Management LLC just by virtue of access to this website.
T11 Capital Management LLC only conducts business in jurisdictions where licensed, registered, or where an applicable registration exemption or exclusion exists. Information contained herein is not intended for persons in any jurisdiction where such distribution or use would be contrary to the laws or regulations of that jurisdiction, or which would subject T11 Capital Management LLC to any unintended registration requirements. Visitors to this site should not construe any discussion or information contained herein as personalized advice from T11 Capital Management LLC. Visitors should discuss the personal applicability of the specific products, services, strategies, or issues posted herein with a professional advisor of his or her choosing.
Information throughout this site, whether stock quotes, charts, articles, or any other statement or statements regarding capital markets or other financial information, is obtained from sources which we, and our suppliers believe reliable, but we do not warrant or guarantee the timeliness or accuracy of this information. Neither our information providers nor we shall be liable for any errors or inaccuracies, regardless of cause, or the lack of timeliness of, or for any delay or interruption in, the transmission thereof to the user. With respect to information regarding financial performance, nothing on this website should be interpreted as a statement or implication that past results are an indication of future performance.
