E Market Briefing For Thursday, May 27

  • Today we heard Senate Bank Com. heavy 'grilling', it was a bit ludicrous, you don't have the egregious behavior, you do have modernized systems for the most part, plus some of the no-fee so-called pro-depositor smaller banks or platforms to link payment methods, often make their money with no visible fees, but by harvesting, and reselling data (worse than others).
  • I mostly tuned-out Senators berating of some of the banks, especially as they avoided issues that do matter, like leveraging provided to institutions or hedge funds, that delivered the S&P (SPX) performance we saw last year.
  • Part of this may continue in this year's 2nd half, but generally even if the regulators turn a blind eye, the top bankers are keenly aware of what was done at the behest of hedgers, and they want to avoid 'blow-up's' whether or not regulations mandate common sense, or not (variable greed?).
  • Banks & Oils were foreseen key for S&P this year, and with liquidity in an excess mode for now, Banks are ok, but the primary moves are done.
  • All else being equal, these stocks and momentum giants led the upside of course, and there will be bouts of moves as the shuffles continue,

Hesitancy about risk-taking dominates what is a semi-holiday week. Too many are trying to reassess where things stand, or becoming cynical critics of those of us who have called this market what it is: a multi-month rotating correction.

Looking for a catalyst such as an exogenous event that can break markets for sure makes sense, but acting upon what 'might' at some future time, become a real factor, doesn't generally work, as this whole year generally displayed.

Epic fiscal and monetary stimulus have supported this market since we'd identified the low of March 23rd of last year. This whole year is a different phase and I don't mean just the 'inflation' or 'reasonable tapering' from the Fed. This year has been, as forecast, a shift to Oils and Banks, to Industrials, to some of the emerging EV considerations (not easy to play, we were simply bearish on Tesla (TSLA) for a correction, and liked Ford (F) at lower levels as an emerging play in the sector, and it continues doing very well).

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Gene Inger 1 month ago Author's comment

P.S. If anyone wants my full reports, which I'm doing having recovered from Covid a few weeks ago; kindly visit www.ingerletter.com and subscribe to The Daily Briefing. In this weekend's report I delve more into the Wuhan-gate scandle that is about to go 'full Monte'. I work diligently at this, gave the correct advice, and would appreciate your joining.

William K. 1 month ago Member's comment

Educational,and interesting as well. And when (IF) the actual truth comes out we will understand just how badly all of those charged with keeping the population safe failed to do that.

Certainly the virus could have been utilized as a horribly deadly weapon if that had been the intention. Instead it was a deadly plague that just escaped the lab, not a weapon deployed. And our president totally denied it existed.

Gene Inger 1 month ago Author's comment

Yes; interestingly I suspected from the Lab in Jan. 2020 and said so; a Chinese couple attended a seminar I gave near Disneyworld and they told me about all the people streaming out of Wuhan. And on March 23rd I nailed the low as you likely know while many were in panic; but the Fed stated their posture. In this weekend's report (only part will be posted here; the entire report and videos are sent to my subscribers) I share a bit of the Australian expose today of Dr. Fauci's connection; and no Trump was NOT briefed; but this could be a huge scandal as you say. And it comes out (and Biden switched to 'wanting' the intelligence) as of course they can't keep a lid on it forever. There are tons of intelligence on this and it came from the Wuhan lab; and even if unintentional; apparently was meant as a weapon; not as research to protect from a virus. That's a spin.

William K. 1 month ago Member's comment

Exactly So!!! Just like the atomic bomb would not have been "Invented" accidentally during research for atomic power.

It is so very offensive for any level of government people to lie to us to avoid getting folks upset.

It seems that they believe that we are all stupid and only they are at all smart. Orwell was right!!