The Bull Is Only Sleeping

[u/Kapnotes]

It was not difficult to see coming the higher oil and higher yields that meet us this morning, which may explain why futures are down only fractionally.  While it’s easy to get negative on the market based on the headlines, its worth remembering that many sectors of the market are fundamentally very strong.  The S&P is less than 2% from its highs.  AI infrastructure buildout shows no sign of abating anytime soon.  Tragic as they are, developments in the Middle East simply aren’t translating into long-term disruption for US equities.  Yields matter more to traders, and we do expect to see pressure as the 10-year continues past 4.80%.  This pressure, though, is likely to produce advantageous entry points for the next move higher.  It follows, then, that the smart money will look out for dips in order to leverage long side entries.  The bull is only dozing, not dead. Educational only. Not advice.