July 13, 2023

By Nigam Arora & Dr. Natasha Arora

To gain an edge, this is what you need to know today.

Contradiction

Please click here for a chart of Industrial Select Sector SPDR Fund (XLI).

Note the following:

• As the momo crowd in the stock market feels the nirvana of cooling inflation, no recession belief, and expanding breadth of the rally, import data strongly contradicts the bullish beliefs.  However, right now, the momo crowd is oblivious and buying stocks.  Prudent investors are paying attention to the import data.
• The chart shows that industrials have broken out.  Industrials are very sensitive to the economy and get hurt in a recession.