The most obvious way to do something complex, such as govern 100 million people or walk on two skinny legs, is to come up with a list of all the tasks that need to be done, in the order they are to be done, and then direct their completion from a central command, or brain. The former Soviet Union’s economy was wired in this logical but immensely impractical way. Its inherent instability of organization was evident long before it collapsed. ~ Kevin Kelly “Out of Control”
In this week’s Dirty Dozen [CHART PACK], we look at inflows, turning market internals and weakening breadth, discuss falling deposit rates and what it means for inflation, before diving into the best performing global equity market to date, along with some ways to trade it…
Q3 2022 hedge fund letters, conferences and more
- The latest BofA Flow Show summary with highlights from me.
- Back in October, I pointed out the positive divergence between Cyc v. Def and the SPX (link here), suggesting we should be open to a bear market rally beginning soon. That has been born out, but now this lead is rolling over. So this is something we need to track.
If it keeps trading down, then it raises the odds this bounce is running out of gas. Another troubling sign is the lack of confirmation from Discretionary/Staples. To turn decidedly bullish, we would need to see this lead turn up.