THE WEEKLY TOP 10


THE WEEKLY TOP 10


Table of Contents:

1) Don’t watch the 3-month T-bill when looking at the yield curve….Also, you don’t need a recession to knock down an artificially inflated stock market.

2) We got some important proof last week that inflation is having a serious impact on growth.

3) Inflation: Demand-driven inflation is okay, but supply-driven inflation (like we have now) is very negative for growth.

4) Due to the flattening/inverted yield curve, the KBE bank ETF is very close to two different important support levels.

5) If the SPX and NDX can break their key resistance level in a meaningful way, it should help push them higher.

6) We got some important proof last week that inflation is having a serious impact on earnings as well.

7) Credit spreads are quietly started to widen back out a little bit.

8) The Fed is not making a mistake. They’re fixing an earlier mistake…and that’s going to be painful.

9) Is the action in the energy stocks telling us oil will remain elevated?

10) Summary of our current stance.


After a very strong rally over the past three weeks, the stock market stands at a key juncture. In this week's "Weekly Top 10," we discuss why the next week or two should be critical as to how the markets act over the entire second quarter...and beyond.

In this week's edition, we discuss why it's important to distinguish between demand-driven inflation and supply-driven inflation. We also highlight how the sustained level of inflation is already creating bigger headwinds for economic and earnings growth than the consensus had been thinking up until now.

On top of this, we discuss why the banks stocks could be in for a rough patch...and why we're still bullish on the energy sector. Finally, we talk about the key resistance levels that that face the stock market's key indices.


For the details from this weekend's piece, please click here to subscribe to "The Maley Report...where you'll not only get "The Weekly Top 10," each week, but you'll also receive my daily "Morning Comment" (every day, Monday through Friday).





Matthew J. Maley

Chief Market Strategist

Miller Tabak + Co., LLC

Founder, The Maley Report

TheMaleyReport.com

275 Grove St. Suite 2-400

Newton, MA 02466

617-663-5381

mmaley@millertabak.com


Although the information contained in this report (not including disclosures contained herein) has been obtained from sources we believe to be reliable, the accuracy and completeness of such information and the opinions expressed herein cannot be guaranteed. This report is for informational purposes only and under no circumstances is it to be construed as an offer to sell, or a solicitation to buy, any security. Any recommendation contained in this report may not be appropriate for all investors. Trading options is not suitable for all investors and may involve risk of loss. Additional information is available upon request or by contacting us at Miller Tabak + Co., LLC, 200 Park Ave. Suite 1700, New York, NY 10166.

Posted to The Maley Report on Apr 03, 2022 — 11:04 AM
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