Well, the consecutive down week streak ended last week as all the U.S. major indexes rallied.  As we have been stating, a bounce was coming so finally getting an up week should not be that surprising.  If you look at the performance of sectors from the late March peak to the recent 5/20 low and compare it with the leaderboard since then, they are nearly mirror images as shown below. 

Four of the five worst sectors on the decline (CD, Tech, Financials, and Industrials) were among the top five as wrapped up the week.  On the flip side, the relative winners as the S&P 500 was falling (Utilities, HC, Staples and Materials) all underperformed ever since the trough.  Interestingly, only Energy outperformed on both the sides, which is clearly the strongest area based on our earnings revisions work.  

So, the 2022 “bear” market is over and it’s time to position for an even larger and long duration up move?  I will reiterate some comments that I made last week.

Based on my work, the answer is NO.  My key indicators are not yet signaling that we are out of the woods.  The good news I am anticipating there will be a great opportunity for investors to take advantage of a lot of high-quality stocks that is still in front of...

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