Good morning: Well… the data says the slingshot is back… our Intraday numbers again led the rebound - and daily figures have caught up quickly… Watching CNBC this morning… an analyst talked about Oracle. When the chatter turned to market momentum… the chatter again focused on AI… that the AI trade was back… that AI was gonna AI, and therefore AI… I want to point something out… I don’t see anything about Japan… The fourth-largest economy in the world - and second-most important “Western” central bank - is pumping $135 billion into its economy… DESPITE rising inflation. Yeah… That’ll help flush the pipes a bit… all while the Fed is on the verge of cranking $20 billion a month into short-duration… but it’s totally not QE. Maybe I’m insane. Maybe all this stuff I’ve studied for 15 years isn’t correct… That it’s just a bunch of people chasing AI… and it’s ALL AI… all the time… But then I take another step back and point out that the Fed just pumped another $13.5 billion into banks, their second-largest flood of cash since Covid… Oh… I guess this does explain the short-term behavior… the stuff that’s levered up… the stuff that’s rehypothecated… the stuff that is bought with borrowed cash… that’s all moving higher… while momentum is running higher… and insider buying stalls… Yeah, I’ll stick with my thesis… Now… onto the market insight…... Continue reading this post for free in the Substack app
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