The Lord’s Prayer
Our Father, who art in heaven, hallowed be thy name. Thy Kingdom come, Thy Will be done, on earth as it is in heaven. Give us this day our daily bread and forgive us our trespasses, as we forgive those who trespass against us. And lead us not into temptation, but deliver us from evil. Amen
8:15 am
Good Morning!
SPX futures rose to 7236.40 as investors pile into the froth. But significant institutions have left the market as pensions rebalance, hedge funds sell and commercial traders are neutral. Retail investors have migrated to options, making it a very crowded trade. Mutual funds, on the other hand, are trying to catch up to large tech and energy performance, making these the “dynamic duo” theme going forward. Meanwhile, the Cycles Model calls for a correction, as these themes have been quickly overdone. The saying “sell in May and go away” may apply. The coming correction may offer investors a chance to reload for the final push later this summer.
ZeroHedge reports, “US equity futures are higher, set for a new all time high, as the rally that’s pushed Wall Street to record highs on strong megacap tech earnings continues, after the S&P posted its best monthly increase since November 2020.”
The Premarket VIX dropped to 16.51 this morning as the current Master Cycle extends to new lows. This tells us there may be new lows, as VIX is compressed beneath the old trendlines. The Cycles Model infers that the decline may last another week as the new Master Cyclle winds down. .