Welcome to the Macro Breakout in the Stock Market....
We are a point where capital should be fully deployed. The structure of the current environment for equities is one of the best macro positions in years. The Secular Bull Market is well intact globally and in the United States. The leadership is coming from the lead commodity, Copper. The banking sector is much improved and banks have cleaned their balance sheets. The yield curve is still steep and rates are low. Inflation is not yet an issue. The employment picture is now stable and perhaps ready to improve in the second half. The OSX gave the heads up from the weekend edition with the 9.62 put call ratio on the weekly sheets.
The only group that will struggle is Gold. Bonds should put pressure on the Gold market. Housing is doing well. The Public moved out of the market and will get back in above 1221.75. It certainly looks like steady growth is upon is. Well for me, when I see the biggest economy go from -6.6% to up 5.0% in a 5 quarters. I consider that a boom. That is unsustainable and a leveling out is necessary. Normal growth with low rates and low inflation are the mother's milk of growth. Companies are lean and mean and there is money ready to be deployed. The trick is as always to get ahead of it and we are. Also the Dry Bulk Shipping Index looks to have turned higher also.
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