Stock market rotating (knee-jerking) defensive in the wake of Jim Cramer’s unwitting contrarian call
“The Unbridling the Bull” my ass. Carnie barker Cramer provided us with a warning just last Thursday. It is unbelievable that this guy still has a TV show, even if only for entertainment.
On the DeepSeek AI hype, the stock market is doing the predictable as Healthcare rams upward.
Possibly putting a bottom in for the XLV/SPY ratio.
A ratio that is an important risk-off internal indication if it continues. Note what happens with Healthcare relative to the broad stock market when risk slides off prior to and into bear markets (2000 and 2008) or deep corrections (2022). Note also, that the trend is still hard down in XLV/SPY. So much more work to do to put in any sort of solid bear market signal. Today is a market reaction, not a new trend.
Today is either the beginning of a bear market (not overly likely) or a sentiment shock to fix what we noted in NFTRH 846 was getting unhealthy again:
Indeed, Dumb Money is eating this stock market recovery just as would be expected, while Smart Money fades it. Risk indications are also climbing again, per Sentimentrader’s short and medium-term data.
Gold bugs are not free of sentiment excess risk either as gold is leading the joyous sentiment parade. This my friends is another indication that when the broad bull tops the precious metals will probably be vulnerable as well. At such time it will feel so damn bullish and the usual pom-pom waving suspects will be imploring upon us as to WHY it is so bullish. I would recommend filtering that at such time.
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