September 27, 2021

Retreating bears and dollar struggles

S&P 500 decline leaves something to be desired – conviction of the bears. Credit markets and the dollar have sent not so subtle signs that we‘re in the latter innings of this week‘s corrective move, and a snapback attempt in stocks is likely. That‘s even more so true in commodities – these didn‘t wait (with the exception of copper). Stocks though remain wavering, without a clear tech or value leader.

But did you notice the degree of bearishness that such a measly downswing elicited? Given where the Fed and Treasury are in monetary and spending plans, nothing has changed – the debt ceiling drama is still out of the markets‘ focus alongside pretty much everything else including Evergrande and similar fears. Who could have forgotten the late Jan GameStop, or then Archegos? And the markets keep rising on the staircase liquidity wave interrupted by a…

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