Weekend August 15 2021
TBF the short bond fund pulled back a bit Friday, that may extend into Monday Tuesday before resuming uptrend again
S & P We have a breadth problem
The percent of stocks above the 150 day MA is falling while the S & P itself makes a new high, this is a breadth problem typical of a how a high is set.
We expect sell off at least into mid Sept if not later, Sept Oct is annual seasonal weakness.
Transports
The Dow Theory Non Confirmation continues with Transports making a new low while Industrials make a new high. Looks like Transports are in a modest Wave Two up in a larger overall move down.
S & P Small Cap Index
the sell off was not as pronounced in the Small Cap index. But the MAS are converging which is a sign of trend change.
We anticipate falling bond and stock prices into the seasonally weak Sept Oct period.
Social Mood
Socxial mood continues negative with more violence in large USA citeis, ,21 murders in Chicago just last week. SW Airlines is warning of weaker bookings amid concerns about other strains of COVID. South America appears lost with Peru electing a elft wing type, Venezuela is gone, and previously Stephen Moore noted Chile lost its Milton Friedman roots from the 19790s. Team Biden does nothing to stem the border deluge of immigrants despite plleas from border communities. The hemline indicator dictates that women's fashions get more frisky at market tops We had the flapper in the 1920s, the bikini swimsuit was introduced in 1946 before the 1948-19+66 bull market but later supplanted by the topless swimsuit. Now we have on yahoo.com no less, the loincloth variety, a new high or low depending on POV in revealing fashion. I have no idea who Lala Kent is but this is one of the less revealing photos that has been on yahoo.com lately.
Elsewhere the fal of Afghanistan is happening in weeks rather than the months the Pentagon suggested. Fires rage in CA and Greece.
Comments