Mad Money Host at CNBC
Member since: Sep '20 · 6993 Opinions
Today, stocks slid as treasury yields rose. The budget deficit is front and centre now. When we finish budget negotiations to result in a bill, people will focus on Trump's promised tax cuts should be great for growth. The bill is inflationary, but will juice the whole economy. We will grow our way out of the deficit. The bond market will calm down.
Of the big banks, they are the most levered to investment banking, including IPOs. He bought it expecting an uptick in IPOs under Trump, but his tariffs have temporarily derailed that. The IPO revival should happen if tariffs don't return. This pulled back hard since mid-February because of those tariffs, down 35%.
She says the S&P large-cap chart shows the start of a bullish cycle--unconfirmed. Confirmation will be the 13-week moving average crossing above the 26- and 40-week moving averages, which is asking a lot. The S&P needs to make 6,000, and 6,147 is the Ceiling of Uncertainty. A bullish indicator, though, is the MACD has made a bullish crossover. On the S&P equal-weighted index, she says the S&P is moving in the right direction, but the chart must break above its Ceiling Resistance from 7,333-7,0421. But the MACD line is bullish. Thirdly, the XLK is in the early days of a bullish cycle, but the chart must break the Ceiling of $230-237; we're in the middle of that range now. Also, the MACD shows a bullish crossover. However, treasury yields need to go lower, not higher; 4.8% would be a dangerous level.