Summary

- S&P 500 closed at 4,395.26 slightly down from an ATH of 4,411.79 last week

- The market-action Friday marked a recent reversal, with re-opening and reflation plays declining and sectors like Real Estate and Staples eking out minor gains

- Despite the rising cases of Delta Variant, the economy is continuing to show strength and the VIX has not spiked in a major way since the sell off on July 19th

- The violent activity within sectors and various names have likely de-risked many portfolios. The path of Delta seems to us to be near a peak. If this is true, we expect a major risk rally
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The market has been sideways and seems to be lacking direction. Like being stuck in windless doldrums, the summer months often trade sideways for several reasons. Also, despite the fact that the indices are hovering quite close to their all-time highs, a story of brutal and sudden sectoral rotation has been playing out. Many of our clients certainly don’t feel like we’re at all-time-highs and the frightening headlines and uncertainty about the effects of vaccine certainly appear to be spreading the potent contagion of fear.

Some people seem to be definitely ceding to it is all happening again, narrative. Only thing is, we’re ...

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