QuiCQ 30/05/2024
Of Canaries and Mines
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"If ignorant both of your enemy and yourself, you are certain to be in peril."
-- Sun Tzu
Whilst we remain firmly in the bullish camp for the remainer of the year (or at least until early November), we are growing short-term somewhat more cautious. Bond yields are pushing higher again and less-dovish comments by some FOMC members over recent days are yet further reducing (US) rate cut probabilities. This, coupled with deteriorating breath on stocks, such as the advance-decline rate (middle clip) and the % of stocks above their 200-day moving averages (bottom clip). Hence, chances the S&P 500 dropping below support (top clip) are increasing. Remember, buy-the-dips is still the mantra, but the coming dip could be a tad deeper.
