Valuation not demanding, but visibility still lacking. Earnings yield is 2.82% above 10-yr yield, the highest in 18 months and vs 0.30% avg since 1980

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STRATEGY: Valuation not demanding, but visibility still lacking. Earnings yield is 2.82% above 10-yr yield, the highest in 18 months and vs 0.30% avg since 1980

GLIMMERS: While buyers strike continues, some cyclical equities outperformed
This was another bloody day in markets, building upon a string of such bloody days since early February. And markets gyrated dramatically within the day, from a 2% loss to a +1% gain and back to a loss. The buyers strike for equities continues. Markets do not like uncertainty and the Russia-Ukraine war adds to this for obvious reasons and moreover, creates knock-on effects from rising oil and other commodities.

While Energy stocks have been leading and remain leaders in 2022 so far, Tuesday saw cyclicals and other stocks rally. Take a look at the top 25 best performing stocks Tuesday:

- Airlines, Engineering, Entertainment rallied
- these are typically sensitive to higher inflation risk
- Granted, it is only 1 day of trading
- and they were hard hit yesterday

But to me, this is a glimmer of improvement. Stocks are still suffering badly and technicals remain weak. But as we discuss below, ...

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