- Sometimes you win, sometimes you lose and sometimes the blues get hold of you...
- Carole King, Sweet Seasons
Countdown @ 0...
Our call for a market correction after the Fourth of July holiday is a zip, zero, and maybe because it is so wrong, a negative? A recap not only shows the market rally continuing, but establishing new record highs in the Industrials and S&P 500. The only divergence comes from the Transports. It did rise, but it never came close to testing its last high. This is like an honorable mention for not making an all-star team. We were not alone as many analysts like the Oxford Club declared what we said. The most notable being the Big Short, Michael Burry. We can cry in our beer as the Bulls drink champagne. As for you, our Dear Readers, we find ourselves under restless nights. Our conscious won't let us sleep. This is why we rarely mention individual firms because if we are wrong, we might have caused you financial harm. With that said, this is the scoreboard as of last Friday.
Industrials = Closed at 53,732. This is over 1,000 points higher from our call date. Although the index was down for the week, don't be fooled. During the period it set a new record high with momentum.
S&P 500 = Closed at 7785. This is up over 200 points and along the way, it too, set a new all-time high.
Transports = Closed at 21,792. Around 400 points higher, but never came close to testing its last high.
NASDAQ = Closed at 26,729. This is 1,200 points higher and hanging at its high.
Russell = Closed at 305. The small cap index only rose 10 points and it had extremely low volume. This is like a consolation prize. If the market were to correct, say late September or October, this index would be the first to show a decline. If after the consecutive down days this week, one might think it coud be just the timing? The last word on that would be if the market tested and pierced the March low. With that said, we, at Evolution made the wrong call.
Related
Sometimes President Trump does some good things and sometimes some really stupid things like last week. He stated that he would not allow the Transparency Act of 2021 to be enforced. This act says firms must report all details. By doing this, he allows "zombie firms" to continue to operate and that can hurt a lot of people. The big boys love it like Nvidia which has issued $225 billion in bonds with no transparency. They are hiding the true cost for data centers and AI along with Amazon, Google, Meta and et al. Leverage and its overuse is why banks and firms collapse. Not good...Peace.
