Big-Tech stocks rallied today as Small Caps lagged and the S&P and Dow trod water as yesterday’s exuberance faded with an ugly close…
But sentiment, complacency, and ignorance continued to drive to ever higher highs…Over 86% of Nasdaq composite stocks are trading above their 200-day moving average – that is the highest number since February 2004.
Notice that historically spikes like this have commonly been faced with near-term corrections.
Additionally, as The Bear Traps Report notes, the Battle Royale between re-opening and further lockdowns continues.
It is all about Reflation vs. Deflation risk, Commodities – Value vs. Nasdaq, the trade of the year. Lockdowns will concentrate profits in the hands of the few (FAANGM), re-opening will steepen the curve, position capital in value, and commodities, when 1.69 breaks in the ratio, it will be a large event… Read more…..
Chart of the Day
CNBC.com’s MacKenzie Sigalos brings you the day’s top business news headlines. On today’s show, CNBC’s Kate Rooney breaks down what to expect from the Biden administration in terms of cryptocurrency regulation. Plus, CNBC’s Deirdre Bosa explains why Chinese billionaire Jack Ma’s reappearance this week captured the attention of the global business community.