The Guts Of The Stock Market Is The Best Economist
The Guts of The Stock Market Is The Best Economist - Stanley Druckenmiller
If you missed Buckle Up, here is the LINK. Every chart corroborates the hypothesis that the market today has a late 90’s feel. However, it’s not a bear prophesy. The AI phase is in the early stages of acceleration. Take a look for yourself.
The rally over the past week has created more divergences. The rotation into the Mega Caps is relentless.
MicroCaps are still lagging. Post this rally, they are still below their pre-covid highs. This is just a reflection of high rates and tightening liquidity.
Cap. weighted Industrials have been underperforming all year. Now they are breaking below important support.
Materials are breaking down, also.
So are Transports.
While cyclicals are breaking down, Big Tech is accelerating.
7. Microsoft is the leader in Big Tech and made an all-time high. Two posts on Microsoft, LINK, and LINK.
8. Outside of Mag 7, the Software group is showing persistent strength. So is Cybersecurity.
9. The Semis are the new Transports. If the Semis are outperforming, it’s RISK ON. They are!
Have a great weekend!
