US stocks reversed early gains overnight with all 11 sectors closing lower while Energy names underperformed the tech Sector for a change. As we mentioned earlier and in previous missives US investors are extremely bearish as they key their view from bond yields and the influential tech stocks. We are “happyish” to maintain a contrarian stance anticipating a squeeze higher believing the market has positioned itself well ahead of the yield / inflation curve i.e. a few weeks consolidation could easily see a strong bounce in the FAANG’s et al but as we’ve witnessed with Netflix (NFLX US) the market has zero tolerance towards bad news by stocks priced for growth.
MM remains mildly bullish US equities through April, into May
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