Rally Is Stalling, but Upside Risk Remains

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Hey, it’s me Danny. I’m back!

Sometimes you have to decompress from trading every day. I was going to take the whole week off, but I felt bad that I broke a 31-year streak of writing the Opening Print and I wanted to get short. I sold 5087.50s and I have offers in above there. In other news, Bitcoin surged to $64,000 yesterday, Tesla gained +1%, while the rest of big tech — Microsoft, Apple, Nvidia, Alphabet, Meta and Amazon — all fell. The VIX climbed +1.5% and TLT gained 0.6%. The point? Everything is moving ahead of today's economic releases. 

The PitBull thinks this could be the beginning of a pullback. He didn't say how much, but he did say many of the stocks he watches have gone too far and are overdue for pullbacks. You know how I always say no one knows where the S&P is going for sure? Well, I am not going to name them, but many of the well-known market timers have been saying “sell, sell, sell” for months. I think when it comes down to it, we will know that something has changed and I don't know if it's going to be an economic problem or something like the US is fighting wars on multiple fronts.  

There are a host of things that potentially could cause a larger decline, but right now the US stock market continues to make good of the bad news. If today's PCE report — the Fed’s preferred inflation gauge — comes in hot, it could put the Fed's rate cuts on hold even longer.