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The video in this report is only accessible to members
The tug-of-war between bulls and bears seems never-ending, as any hint of inflation easing seems to result in a sharp recovery for Equities.  Yet, Tuesday’s BOE governor’s comments seemed to throw “cold water” on the rally in global risk assets when he reiterated the plan to stop bank intervention in the bond market by end of week. Importantly, Equities continue to trade in a very tight positive correlation with the move in Treasuries, but even on failed rally attempts, are having a tough time pressing lower.  While many correctly point out that $QQQ is back at new lows for the year, the Equal-weighted Value Line Geometric Average remains well above late September lows, as groups like Financials, Discretionary and Healthcare are faring far better than Technology lately.  This camouflaging effect of Tech appearing to drag the market lower every day simply isn’t true when one strips out the effects of Technology, and momentum and breadth are in better shape than they were a week ago, specifically given how sharp last Monday and Tuesday’s rally proved to be.  Overall, I continue to feel that downside should prove limited in Equities and that positioning long ahead of an important CPI number against a backdrop of ...

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