THE WEEKLY TOP 10


We’d like to highlight something we haven’t mentioned in a while. In our weekly update each week, we frequently highlight issues that are in in direct conflict with one another. In other words, we sight things from both sides of the bull/bear ledger…and thus it may seem like we’re talking out of both sides of our mouth. What we’re really trying to do is to highlight issues from both sides of the ledger…while still letting you know which side of the ledger we stand on at any given time. Thank you very much.



THE WEEKLY TOP 10


Table of Contents:

1) China, U.S., & Europe: All becoming less accommodative. That’s bearish.

2) 1.6% on the 10yr yield is not low enough to justify a 21x multiple.

3) S&P 500 breaking out? Can it accelerate even further into year-end?

4) The healthcare sector has a lot of upside potential going forward.

5) Tech earnings are important, but don’t ignore the others.

6) Several technical reasons to think LT yields will continue to rise.

7) It didn’t take long for the froth in the marketplace to resurface.

7a) Bitcoin taking a breather…not a big problem.

8) Keep a close eye on the XLI industrial stock ETF.

9) The bounce in the high yield market didn’t last very long.

10) Summary of our current stance.


1) As we will discuss in point #2, there is no question that last week was a good week for the stock market on a technical basis. However, we still believe that an important change has taken place in China…and an important change is about to take place in the U.S. and Europe. All of these changes will cause the use of leverage to decline…and that will cause today’s very expensive stock market to correct before ...

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Morning Comment: At Some Point, Stocks Will React To Rising Yields



We’re going to be quick and to the point this morning…….The S&P 500 Index reached a new all-time high yesterday, so the stock market rally off the early October lows continues to be a strong one. However, the internals have ...

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Morning Comment: Healthcare sector poised to outperform.



The stock market just keeps on humming along. Both the S&P has rallied five days in a row…and has successfully moved above its key resistance level (its 50-DMA). In fact, for all practical purposes, the S&P 500 is now testing ...

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Morning Comment: Don't Fight The Fed


Back in the middle of September, the S&P 500 broke below its 50-DMA in a material way for only the second time this year. The first time it happened (in March), it rebounded within two days and then continued to ...

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THE WEEKLY TOP 10



THE WEEKLY TOP 10


Table of Contents:

1) Friday’s employment report should not keep the Fed from tapering.

2) 3 major economic powers are getting less stimulative. That’s all you need to know.

3) Inflation fears will remain even if ...

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Morning Comment: Otter was right!



Today could be one of those days where all investors wait around to see what happens next. Sometimes, there is a very important data point that everybody wants to see; or there is a speech that everybody wants to hear. ...

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Morning Comment:

Tomorrow night, the Boston Red Sox and the NY Yankees will play in the wild card playoff game at Fenway Park in Boston. This is essentially a “play-in” game for the American League playoffs. Just over 40 years ago, we ...

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Morning Comment: Three Key Changes In Trend That Concern Us Greatly



It was another rough day in the marketplace yesterday…and seems to be pointing to lower stock prices as we move into October (no matter what happens today). Probably the worst development from yesterday was that the Yankees won and the ...

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Morning Comment: We're following the same script as this time last year.


We had a very mixed day in the stock market. The S&P 500 and Nasdaq declined, while the DJIA and the Russell 2000 rallied. We had a similar divergence among the groups, with the energy and financial sectors rallying strongly, ...

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THE WEEKLY TOP 10

I am told that there was a problem with posting my “Weekly Top 10” last evening. Therefore, I thought I’d re-send it myself this morning. My apologies if this is a dupe. (BTW, this was written before the news that ...

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Morning Comment: The spill-over of a key de-risking policy.


Much like the coronavirus in January and February of 2020, the situation facing Evergrande has been staring investors in the face for a while now…and yet they have ignored the growing negative situation (mostly due to the fact that the ...

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THE WEEKLY TOP 10

I’ll be away next weekend, so I will send-out an abbreviated edition of “The Weekly Top 10” on Thursday evening. Thank you very much.


THE WEEKLY TOP 10


Table of Contents:

1) When inflation is induced by a lack of ...

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