The Market Ear on the melt-up and its end.
Has Wall Street become a one-way street?
Yes, we admit that we have rarely seen a more positive tactical backdrop for equities in our lifetime. Earnings are beating, the macro is turning, the “once in a lifetime” transformational mega-theme keeps delivering. Add to this the fact that stocks are not even expensive yet and that many sentiment & positioning indicators could get more stretched and you have the ingredients to a continued perfect storm in equities. However, sometimes even winners need to pause. We do believe equities will be lower over the next few weeks. The key reason is just our “trading feel”. Below are some other observations.
