Momentum Monday – Still Trying To Be Patiently Constructive

This post is by Howard Lindzon from Howard Lindzon

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Good morning.

I was trying to be ‘patiently constructive‘ during last weeks Momentum Monday. It is harder to be constructive today. As Ivanhoff mentions in this weeks episode…the inflation trade is back dominating the tape.

I will get right into it with today’s Momentum Monday. You can watch/listen to Ivanhoff and I walk through all the good, the bad, the ugly right here on YouTube. I have embedxded the show here on the blog below:

I think indexes will continue to struggle going forward as too much money sloshing and too many overvalued companies that people will eventually shed. A couple weeks ago I wrote abut the battle coming at the 200-day moving average. As I thought, the 200-day moving average has beaten stocks back for now.
Patience and risk management will continue to rule as valuation compression works its way through a deglobalizing world flooded with capital.

Here are Ivanhoff’s thoughts:

The main premise behind the summer rally was that the Fed was going to pivot because of the possibility of overdoing it and causing a severe recession. This was the market’s bet. As a result the stocks that were (Read more...)