A J Powell Mini Bear, More Weekly Bull, and the dangers of a narrow rally.

Hey, Peter Navarre here with our market wrap for the week ending February 2nd, 2024.

One picture is worth a thousand words.

Take a look at this chart of the S&P 500.

I'll just shut up.

Okay, the chart may actually need a little interpreting, particularly if you're getting this only on the

podcast rather than the sub-stack.

Hey, go to the sub-stack to see that chart. So yes, another bullish week on Wall Street

when you gauge it from start to end as the chart shows, but it was hardly a straight line up.

The big drop you see in the middle of the week was after Fed Chair Jay Powell opened his big fat mouth and threw ice water on the idea that the Fed will cut rates anytime soon.

Of course the big rally over the next two days occurred because nobody on Wall Street

really believes Powell is at the wheel of Biden economic policy.

Powell is just along for the Keynesian over-stimulus ride in the hopes he'll get another term from Biden when his is up in

2026.

Mammote Jay.

Biden ain't winning and Trump is going to get rid of your sorry dairier long before 2026.

As for what's driving the bullish trend, my thesis has been that a large portion of the stock market is actually in the

dulgums, but being lifted by the strength of some narrow leaders in the tech AI

sector, which is undergoing one of the most massive

and potentially destructive innovations in our nation's history.

My broad and obvious fear is that as the AI secular boom accelerates, we will hit a threshold

that will lead to the biggest mass layoffs this side of the Great Depression.

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