IT’S JUST ONE DAY BUT POSSIBLE CHANGE OF COMPLEXION!

We do not usually send out two notes in a day but thought we must today.

Our thoughts from about 3 weeks ago that we thought we had an inflation peak ARE NOW REALLY COMING TO FRUITION. COMMODITIES are croaking. ENERGY prices are croaking. YIELDS are cracking. Fundamentally, this is good news as cost of everything comes down. LET’S HOPE IT STAYS THAT WAY. We saw it all in the price action right off the tops. $4 oil anyone? THAT SAID:

Our bleary, jet lagged eyes say today is one of the most important days we have seen in growth stocks/higher beta/tech/software since last November.

We put that line in bold because the bear market in growth/higher beta/tech/software has been going on for a good 9 months+ with many stocks topping out in early February 21 and many names down 70%+. Our favorite line on radio and television has been “we are growth stock managers that own no growth stocks.” Without a doubt, today stands out. The DOW is down markedly while the NASDAQ is sticking out to the upside. These bombed out names may have had enough time at the lows and retesting those lows. We certainly know they may have had enough price to the downside. One day is one day but we saw the top in OIL STOCKS because of one day. We are not sure this is a major change yet but for now, we are just calling this an eye-opening occurrence that wakes us up. We already know the big, fat change of complexion on the inflation trade. The economy trade remains pretty much toast as the market yells economic trouble. Would be nice to get the opposite for the growth arena. Just keep in mind that these are bombed out stocks. Just keep in mind that many report earnings in the next few weeks. Just call this a head’s up.

And yes…lower everything gives relief to Mr. Bubble. Just remember what we have been saying. The market is leading Mr. Bubble. Not the other way around.