Summer Grind Meets Wall - Morning Market Squeeze

Key Tactical Takeaways:

> In the wake of this past weekend's jaw-dropping news that Berkshire Hathaway sold bank shares to buy Barrick Gold, financials are no longer benefiting from recent curve steepening, leaving the XLF to face a critical test of support in the area of...

> Gold has reversed its bearish short-term setup in the wake of the recent Berkshire Hathaway headlines, opening the door to a ...

> We've added a new long idea, with an initial target that is 21% > than our entry at yesterday's open.

Some Quick Thoughts:

If you're an equity trader who likes dull, boring, low-volume action, then this is the market for you. With US equity futures maintaining the recent grind higher against a backdrop of fresh Washington and Beijing tensions and an increase in COVID cases across key European cities and US college campuses, the mantra that says, "bull markets climb a wall of worry" is on full display. To be fair, though, this time around any selling has probably been stifled by the prospect for more government stimulus.

It reminds us of a scene from the 1979 blockbuster Apocalypse Now, in which a young, strapping Robert Duvall proclaimed, "someday this war' gonna end," in reference to the seemingly endless war campaign that rocked Southeast Asia from the mid-1950s to 1975. Well, someday this market will become a market again. Maybe.

Just yesterday, Goldman raised their year-end target on the S&P 500 from 3000 to 3600. Given the...

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