E Tuesday Talk: Slip Sliding Sideways

He sums up the state of the market in these four bullets:

  • The short-term trend is up for stock prices as of May 14. This is where the change in trend began.
  • Contrarian sentiment is unfavorable for stock prices as of Nov. 14.
  • The economy is in expansion as of Sept. 19.
  • The medium-term trend for treasury bonds is down as of Oct. 10 (prices lower, yields higher).

Contributor  Jesse  in Stocks And Precious Metals Charts - Who Let The Dawgs Out? - Gold And Silver Rally Higher notes that precious metals day traders had a chance to make some hay, but also gives us some heady charts such as "Blow-Off Top No. 8" for Nasdaq 100 futures below.

"Stocks were off again today, but gathered themselves and managed to take back quite a bit of the loss in the afternoon. But gold and silver were the real surprises today, bolting higher and never looking back. Who let the dawgs out?"

Contributor Sweta Killa closes out this week's column with a look at 5 Sector ETFs That Survived Last Week's Turmoil.

"Wall Street saw tumultuous trading last week with the Dow Jones and the S&P 500 dropping 1.1% and 1.4%, respectively...The spike in inflation has made investors jittery, compelling them to dump the growth stocks in particular. This is because rising prices tend to squeeze margins and erode corporate profits for the growth companies, which usually have higher valuations...However, the stocks rebounded later in the week as investors jumped in to cash the beaten down prices and snapped up the stocks that would benefit from an economic recovery. Against such a backdrop, we have highlighted five sector ETFs that performed well last week and survived the broad market rout.

JPMorgan Alerian MLP Index ETN (AMJ)

MLPs gained popularity on President Joe Biden’s capital gain tax hike plan as they offer huge capital tax benefits. While most MLPs gained, AMJ topped the list. This fund provides investors a way to gain exposure to midstream energy MLPs.

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William K. 2 months ago Member's comment

I see things differently. All it takes to start and grow inflation is dumping in money. Wages do not need to rise for inflation to take off. Does anybody actually believe that dumping FIVE TRILLION DOLLARS into the economy will not launch a cycle of inflation that will cause a whole lot of damage ao a whole lot of people? And it will be serious damage that will threaten the stability of society. Things will change, and not one atom of that change will be for the better. When a whole lot of people suddenly become both homeless and hungry they may not listen so politely as they do while they are at home and fed.

David Marshall 2 months ago Contributor's comment

For a good take on Biden’s ambitions for the infrastructure program(s) check out NPR’s Special Edition of it’s UpFirst podcast with Presidential historian Doris Kearns which was put up over the weekend.

William K. 2 months ago Member's comment

My point was that the records show that in the past, every time money was dumped into the economy, inflation resulted. So why should this time be any different?? There does not seem to be any change in the mechanism of inflation, and so it seems that the results of the action will be the same, although the time delay might be different.

My other concern is about the effect of all that debt on the future. The bad thing about debts is that they must eventually be paid off. ( I keep saying this, I believe it is true.)