Confirmation
Twice, in the last few months I have written about a possible stock market top and lookng for a Monday morning headline, confirmation. We got the new market highs but not the confirming magazine and newspaper headlines to signal the euphoria and final top, until now. Today’s Barron’s cover story is about how the FAANG stocks are still good places to invest. Although not exactly the “screaming headlines” I have been waiting for, this qualifies, as much as that infamous “Business Week” headline claiming the death of equities back in 1979. This proclamation regarding the high tech growth stocks should go down(in hindsight) as the top for the NASDAQ 100. I don’t think it will take three years, this time, before actually playing out.
The fuel for today’s euphoria is two fold. Big one is the full approval for Pfizers vax. Secondary but important is the belief that Powell will punt (at least until Sept. meeting) regarding taper. By Fri. he will talk out of both sides of his mouth(again) and the rally will abate if it hasn’t already by then.