VERY BULLISH...Except for this ONE THING

The Good News | S&P Fundamentals 

  • S&P Earnings Estimates are Turning Positive for the first time in two years. 
  • Estimates Bottomed somewhere between April and July.

  • Q3 2023 Estimates are being Leg by Big Tech.
Earnings are being driven by Corporate Spend + Fiscal Spend + AI

The Good News | Technicals

  • Leading sectors
  • Volatility Risk Collapsing...Appetite for Risk​
  • Equity Credit Risk sliding lower ....Appetite for Risk

  • Peak Put Buying Leads to the Second Leg of the Bull Market 


Bad News | Macro Forces


  • Crude is Breaking out of a 9-month resistance Level. Expect Headline CPI to remain Elevated. 
  • Higher Inflation Expectations can easily trigger the Dollar Wrecking Ball.


Good News | Macro Forces


Good News | Fed Policy

The Economy is Cooling
  • Q2 GDP not as hot as expected
  • Private Payrolls missed expectations
  • Unemployment Ripped higher
  • Consumers are Set to Slowdown in 2nd Half, further cooling the 

  • Cooling Incomes Data

Good News | No Sign of Recession


  • Spending remains Positive

  • The Labor Force Participation rate is back to Pre-pandemic Highs. 

  • Cooling Jobs Growth but Stil Positive Still Expanding

  • Top Industries Adding Jobs 
  • The BUSINESS CYCLE FINALLY TURNIGN UP


Bad news | Inflation

Goods are Deflating, but Services are inflating, Led by Transportation costs. Oil Prices could re-ignite Inflation.​


NO REASON TO HIKE

No wage-price spiral 

  • Wage Growth is colling off versus a year ago.
  • Largest Drop in 12 months.

The Market Is Pricing in NO HIKE