FLASH COMMENTS:

Well, last week was on the quieter side as Street attendance was light during the unofficial last week of the summer.  Thus, this will be my last shortened commentary and will hope to shift back to a more detailed note going forward.  I am going to take today and just think out loud.

Have we entered a new backdrop for the U.S. equity market where good news is bad news and bad news is bad news? 

Well, if economic data is neutral-to-strong, then the dovish pivot likely gets pushed out and puts upward pressure on rates (Growth/High Multiple/Tech underperforms).  On the other hand, if releases are weak, it is a negative for corporate profits and with Chair Powell and Crew not signaling that they are coming to the rescue until more work has been done on their inflation fight (Cyclicals should underperform).  Tough backdrop for the overall equity market, but my work suggests that there should be some relative performance opportunities.  

Yes, I guess that soft inflation data could be viewed to fuel some bullish feelings.  Well, when looking at this likely macro setup combined with my key indicators, it’s quite challenging to get energized and confident to flip to a more constructive outlook. 

If I also inclu...

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