$21 Billion In Dip-Buying Spotted As S&P Snaps Losing Streak

$21 Billion In Dip-Buying Spotted As S&P Snaps Losing Streak

The "summer rally bandwagon is growing." That's according to BofA's Michael Hartnett who, in the latest installment of the bank's popular weekly "Flow Show" series, presented the situation as a simple equation. "Bears + 'peak' inflation + Fed 'pause'" alongside "oversold assets" left the market "vulnerable to a tradable bounce," he said. Sure enough, US equities snapped the longest weekly losing streak in more than two decades ahead of the holiday weekend. The S&P rose the most since Novem
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4 thoughts on “$21 Billion In Dip-Buying Spotted As S&P Snaps Losing Streak

  1. Yesterday my local grocer slashed meat and fish prices in half ahead of the Memorial Day weekend. HomeDepot has appliances 20% off starting a couple weeks ago. Are inventories building because of supplies coming in faster or are people just not buying. Could we see commodities come down as fast as lumber went down last year after supplies caught up? Commodities tend to crash faster than they go up. This could end up as a tailwind for profits even as the dollar stays strong. With such a large middle class these days they are still spending and could spend the US right through this downturn.

    1. Flo. I’m seeing the same sort of thing at my store, though my meat guy was moving Copper River Salmon at $40/pnd and it was flying out of the case. I think one reason for the inventory issues is that backordered products and supplies are now pouring in, weeks or months after they were expected and they have to be moved.

  2. As I recall a point noted elsewhere in the Heisenberg Report, inventories were likely to be high because buyers from some firms made excess purchases as a cushion against supply chain issues and interruptions. It’s interesting to see the consequences play out as they occur in real time. Another consequence that I recall being referenced was an impact on profits due to lower pricing, which is necessary to move inventory because reports in the media about inflation discourage spending.

  3. Isn’t this what Heisenberg has been talking about with the Fed? They will do whatever it takes to bring down inflation. Wouldn’t a sustained rally just make them more determined to increase rates? Nothing has changed in the “real” world; everything is sky high. I don’t think the average middle class person is buying $40 salmon….at least, not in my neighborhood.

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