Deceiving Appearances

There are so many in our culture, we are losing our ability to know what is real and truthful as opposed to artificial and phony. There are probably blogs out there at this moment being run by AI. When something is so prevalent it develops its own category. We now have influencers as a job field. Sadly, could this be one of the reasons for so many divorces? I guess the ultimate in deception has to go to the gays with their stage show. Maybe they are showing us deception by asking you to look deeper at the real person? However, here at Evolution, we only address the market and our economy. In politics, as our readers know, we are for a new third political party. With that said, we see the market showing extreme volatility.

Dow...

...has rallied above its two moving averages and with volume.

S&P...

...has allowed the shills to declare that it will rise to 4300. Not to rain on their parade, but simple math with Fibonacci indicates that this should happen. Nevertheless, the index is also above its two moving averages.

$Tran...

...to be in harmony in Dow Theory, this index should also be rallying. It has moved up, but it has not breached its two moving averages. However, the next index is rocketing to the heavens.

NASDAQ...

...the composite is looking at 13,000 with a lot of fuel still in the tank. What gives, you ask? Have we at Evolution flipped our stance?

No! However, we see some strange facts and factors in the market. We always look at oil. It is hanging at its lows. One aspect is this is a nail to inflation and a big plus to consumers. The flipside says the economy is weak and getting weaker. Then, we read this...

One versus 2,000

Like Ripley says, "Believe it or not..." Apple has a market evaluation greater than the 2,000 stocks comprised of the Russell Index. How can that be, you ask? The market receives new money every month from retirement funds, index funds and big, private concerns. They put their cash behind leaders and they especially like tech. We find this aspect very unhealthy. Apple has fallen hard in the past. It could happen again. If it does, there will be a lot of pain out there. Then, we read this report from...

Home Depo (HD)

It missed on earnings. This is big because it directly relates to consumers biggest purchase, a home. The firm always caters to contractors. This is to say there is weakness in the housing industry. You can get more verification by looking at the price of lumber. Like oil, it is hanging at its lows. Not good.

What we think...

The recent market rally can be nothing more than a relief rally centered on the debt ceiling situation. With news affecting the market, the volatility is high and it will remain high until the next hurdle in life. Peace.