The pain trade is higher.

Recap from last week:

• “Energy vs QQQ is back. Expect a bounce back in energy for the week.”

  • (XLE +10.22% vs QQQ +4.46%)

• “USD weakness helps bid energy, which will also help raise interest rates”

  • (USD -0.79% & WTI +4.41%)

• “Call option volatility and skews are very firm as there is growing sense that this rally is different and might be able to continue.”

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This Week:

• Narratives control the market and the narrative around inflation is about to change.

• If energy continues lower along with the 10 year yield, expected a rip your face off rally in QQQ…. OR vice versa.

• WTI Crude trading at its 200ma is supportive.

• Remember, when trading markets you are trading human behaviors and most unskilled investors regurgitate news like birds.

• The pain trade is higher.

• Watch TTWO.

S&P 500 wont be overbought till 90% of stocks are above their 50ma. Notice unfailing bottoming pattern in red.

If yields continue to fall, high-beta equities will rally hard and outperform low-beta equities.

Take-Two Interactive continues to perform well. Bullish

Remember, the ECB will step in and buy ETFs if it needs to during this rate hike. This is BIG. Source Here

Return always wants its risk payment. NOT INVESTMENT ADVICE.