A 'Bill' has been proposed which would allow the Federal Government to stop 'predatory pricing' of consumer goods. Now there's a boondoggle for you; try to sort that out over states. Anyway it may be just showboating in Congress; at the same time the idea comes close to advocating 'price controls'. Those didn't do so well historically; but if nothing else the mood reflects 'inflation'.

Inflation is real; the Fed has been behind the curve for some time; and clearly Chairman Powell doesn't want to bust the market from too much excess. So, as this Quarterly Expiration wound down with a lot of intraday chop (I'll show a chart of the swinging NYSE 'Tick' just for kicks, to denote Friday's battle.)

The whole week was volatile; providing a couple opportunities to enter small cap 'value' (at least perceived thusly) stocks, and a couple disruptive or novel technology plays that have vision and promise, but are entirely speculative. It is part of the dichotomy of this market including under-performing mega-caps.

Market internals are pretty oversold; about where we were a couple months or so ago; and that's supportive for the idea of a rebound into the new year. For sure, Covid / Omicron is what can keep investors sitting on the sidelines until we see effective antiviral treatments, and less discouragement to live our lives by 'authorities' (well meaning as they may be).

The game plan is what I've already suggested: Accumulate some speculative holdings (diversified as rarely would you expect all of any diverse selections to pan-out; although miracles do happen); retain core bigger-cap investments, with cash levels built from some of those weeks or months ago as outlined. If circumstances only allow a rebound; you'll be able to take advantage of new breakdowns, if and when they occur.

The irony is (based on what Chairman Powell said); if they hike rates as Fed planning outlined, that means tapering is done and growth has arrived. That will incentivize banks to do more lending; might see a real estate contraction; and there are mixed possibilities for the year's first half. Too optimistic?

But in the later parts of 2022, 'presuming' we have effective Covid solutions (better vaccines, effective antivirals, and cheap accurate rapid tests); you'll be in a situation where you could get things like you had a preview of Friday: the Russell up while the S&P was down. And relief rallies lofting lots of stocks; a perfect environment for new or enlightened technologies to thrive; provided of course the individual companies 'effectively' and financially, execute products.

In the new year, Oils will probably do well almost regardless; with demand not low, but better if we get through Covid sufficiently to revitalize global growth. I realize demand is solid anyway; but that would be a safer time for people who are just so fed-up with Covid restrictions that they're almost ignoring it now, at least in much of the Country (not saying it's wise; just reflecting on behavior).

Goldman Sachs talked of Oil going over 100/bbl again. That comment, of course, occurred as Oil set-back on Friday, a bit. Of course they never note their control of a number of leased tankers storing Oil on occasion in the Gulf. As to 100/bbl; well that's a certainty 'if' there's war with Iran (USAF and IDF in exercises preparing for that 'option' in-case all else fails presumably); or Iran's progress on a 'nuclear bomb' gives them the insane chance to start one or for that matter prompt a pre-emptive strike (what they would call it whether or not intending to attack Israel or anyone else again). So there's geopolitical risk(s).

Other sectors are as we've outlined and that means Banks will be alright, but do even better if we get into a renewed growth phase with the coming higher rates. We are not 'fighting the Fed'.