Even the bearish Bank of America strategist says the bear army has room to advance

The Dow Jones Industrial Average DJIA rose five times in a row,
Still not many believers.

After meetings with U.K. clients, Bank of America chief investment strategist Michael Hartnett described much of it as a “short-term gain = long-term pain” pattern. The sell-off appears to be too orderly to believe that a low has been formed.

Hartnett believes that the view that oil prices are soaring is emerging, and crude oil prices may reach $150. He also mentioned another little-known risk — the “house of cards” in private equity.

Hartnett, certainly not a long-term believer, set 4,200 as the point at which the S&P 500 fades out,
“We’re downplaying rallies (eg SPX >4200), but not in a rush,” he said.

For now, the tide of a bear market rally is moving forward, as CPI, bond yields, the dollar and the Fed have peaked in hawkishness, he wrote. He wrote that the Fed proposed a turning point in its annual Jackson Hole speech in late August, when the federal funds rate should be between 1.75% and 2%, and months of quantitative tightening will be on the books.

Bank of America’s bull and bear indicator is in “extremely bearish” territory, and Hartnett said there are many oversold assets relative to the 200-day average, making them vulnerable to a tradable rally. Among them: 30-year treasury bonds, CCC high-yield bonds, Sino-German stocks, US banks and technology stocks, US, EU and China consumer stocks, European industrial stocks.


A wave of economic data was released at 8:30AM ET.

Spending rose faster than expected at 0.9% in April, while personal income rose slower than expected at 0.4%. The year-on-year growth rate of the PCE price index and the core price index both slowed.

Another report showed the goods trade deficit fell nearly 16%, while retail inventories rose 0.7%.

Gap GPS,
down 19% The retailer has slashed the prospect of a fight in its Old Navy division.

Costco wholesale cost,
In line with earnings estimates, but also a sign of margin pressure.It also reiterated that it would not Raise hot dog pricesalthough it has succumbed to raising prices on croissants and muffins.

Dell Technologies Dell,
stock price soars Its earnings beat expectations due to corporate demand.

Biotech companies are set to act after a flood of data was presented at the annual meeting of the American Society of Clinical Oncology. SpringWorks Therapeutics SWTX,
Iovance Biotherapeutics IOVA,
and Mirati Therapeutics MRTX,
– All major holdings of hedge fund Perceptive Advisors, according to its most recent 13-F – each plunged, while Adicet Bio ACET,
and PMV Pharma PMVP,


US stock futures ES00,

Indicates a continuation of recent gains. The yield on the 10-year Treasury bond TMUBMUSD10Y,
was 2.74%.

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