A Very Tentative Swing into Green

This feels like a squeeze. Heavy volume and improving MACD.

Dear Fellow Expat:

The market environment is head-scratching.

None of the risks we’ve seen have gone away.

The 10-year bond yield has risen sharply over the last few months.

But it doesn’t matter in periods driven by algos. This feels like a relief rally after all that has built up. Inflation isn’t going away - and there are new and old challenges.

That said, on an intraday level, there is a rush of money into this market. This is evident in movements like huge swings in real estate, industrials, communications, and technology stocks.

Volume is HEAVY on the S&P 500 Technology ETF (XLK).

Early Green across the board with heaviest gains on names we discussed last Wednesday (see Apache - APA) up 8% in a week. Hoping that Five Point (FPH) starts to push higher finally. Housing stocks are roaring…

The Direxion Daily Homebuilders & Supplies Bull 3X (NAIL) is up +20% in a week.

We’ll see if it’s sustainable at the end of the day.

Stay positive,

Garrett Baldwin