The recent peace rally seen across Stock Markets, particularly in the US, is easily one of the most hated and misunderstood move since the 2022 bear-market rebound.
The narrative hasn’t changed the slightest but there has been a clear lack of progress or any sign of clarity regarding what’s coming next with the streak of back and forth passive-aggressive negotiations (which have still yet to begin).
The US side is still very eager to reach a deal, but Iran is surprisingly very resilient despite the heavy chokehold that the US blockade is inflicting on their economy – The latest demands from the Islamic regime are to lift the blockade in order to move on with the talks.
Many conditions are being required to move on to the next phase of the peace process, but rumors are pointing to revolutionary guards and Iranian government parties just unable to reach a consensus.
In the meantime, tech-buyers are still buoyant and pushing the Nasdaq, Tech Mega Caps and Cryptocurrencies in a gigantic rebound that is brushing all types of late short-sellers and doubters aside.
Nevertheless, one thing to be wary about is the fact that both the Dow Jones and S&P 500 haven’t able to join the rally – A lack of Market breadth?
Surely, but it just continues the trend of local plays in Stock Markets where investors flock into relatively undervalued sectors – And looking at recent earnings reports, they tend to attack anticipating dip-buyers.
So after the major earnings week, current levels will have to be confirmed (particularly if the War continues).
